Barclays Share Discussion Threads

[bernie37] 12/5/2017 17:15

Barclays’ new corporate and investment banking boss, Tim Throsby, recently stood in a hall at the bank’s London offices to address over 100 members of his team and dozens of others who had dialled in from abroad.

He started by explaining who he was.

Last year Barclays chief executive Jes Staley turned to Mr Throsby, a relatively unknown former JPMorgan Chase executive, to run Barclays International, which accounts for more than two-thirds of the bank’s revenue.

The 50-year-old Australian spent most of his career overseeing equities-trading desks. Now he is responsible for a franchise that includes German credit cards, rich clients in Switzerland and a bond trading desk in New York.

In 2016, Mr Staley unveiled a sweeping restructuring of Barclays, which included paring its 100-year presence in Africa in favour of a bet to stick with its unloved investment bank. Its shares have rallied 50 per cent over the past 12 months, helped by the prospect of rising rates.

“The key question is whether Barclays is benefiting from a rising tide or whether the action he is taking is a dominant driver,” said Thomas Moore, an investment director at Standard Life Investments.

To turn around the British lender, Mr Staley handpicked a team from his former employer JPMorgan. Barclays’ chief financial officer, chief risk officer and chief operating officer are alumni of the US bank. Finding someone to run Barclays International was the last piece of the puzzle.

Known for his tieless appearance, Mr Throsby built a reputation as a decisive, and at times abrasive, operator over a three-decade career.

At JPMorgan, he overhauled the equities franchise, competing fiercely to access the bank’s huge balance sheet and allow clients to take more risk.

Former colleagues and clients expect the rugby-loving executive to repeat the feat at Barclays’ investment bank.

“He has significant global experience,” said Francis Troise, chief executive of ITG, a New York-based brokerage, who previously worked closely with Mr Throsby at JPMorgan. Under Mr Throsby, he said, “business gets done”.

Barclays has no plans to pump more capital into Mr Throsby’s unit. However, he will have the freedom to reallocate resources to the investment bank from within his wider business, which includes big corporate customers, a US credit card business and wealth management.

Mr Throsby forged his career in Asia jumping between big investment banks. After stints at Macquarie Group, Goldman Sach and Lehman Brothers, he moved to Citadel in Hong Kong. When the hedge fund firm retreated from Asia in the throes of the financial crisis, Mr Throsby quit and travelled to Britain to study law at the University of Oxford. He never finished.

In 2010, he joined JPMorgan to run its European equity derivatives business. It was there he caught the eye of Mr Staley, who was heading up the lender’s investment bank at the time.

By 2012 Mr Throsby was in charge of JPMorgan’s lagging equities division. He helped overhaul electronic trading and attract more hedge fund business. He pushed to bring more capital to the equities division and to allow clients to take more risks. At times, he butted heads with other managers at the bank by encroaching on their territory, such as by helping clients trade in regions overseen by other managers.

Between 2012 and 2016, JPMorgan’s equity markets income rose 30 per cent to $US5.74bn, in part fuelled by its equity-derivatives business.

Mr Throsby, who has six children, also found time to buy and renovate his old family home, Throsby Park, near Moss Vale in NSW.

Last year Mr Staley spent months wooing Mr Throsby away from JPMorgan. He was hired in part on the understanding he would join the bench of Mr Staley’s long-term successors, which include COO Paul Compton, another former JPMorgan executive.

Juggling Barclays International will be difficult, analysts say. Mr Throsby will have to encourage big corporate banking clients to do business with the investment bank. Capital will be tight and his success will be determined by his ability squeeze out returns from his unit’s balance sheet.

One focus will be ensuring the bank’s US unit passes the Federal Reserve’s upcoming stress tests. Barclays acquired a large chunk of that franchise from Lehman Brothers after it collapsed during the financial crisis. And it will be from offices on a trading floor of the old Lehman building in New York and another in London that Mr Throsby will help steer the bank.

[bernie37] 12/5/2017 16:57

Barclays’ investment bankers now have a new boss. Having been named as Barclays’ new corporate and investment bank CEO in September, J.P. Morgan’s former global head of equities Tim Throsby has now officially started as of today.

Throsby is another former J.P. Morgan executive to move across to Barclays after Jes Staley’s appointment as CEO. He joins Barclays’ chief risk officer, C.S. “Venkat” Venkatakrishnan, its chief operating officer, Paul Crompton, and new investment banking CIO, Mark Ashton-Rigby who all came from J.P. Morgan.

But Throsby arguably has the biggest job on his hands to turn around Barclays’ ailing investment bank. Here’s what you need to know about the man and the challenges he’s facing.

1. He’s always been an equities man, but nearly changed careers

Throsby has worked at Macquarie, Lehman Brothers, Goldman Sachs, Citadel and J.P. Morgan. Aside from a brief period in fixed income at Credit Suisse early in his career, he’s always been focused on equities. The story goes that Throsby was handpicked by Jamie Dimon to head up J.P. Morgan’s EMEA equities division in 2010 from Citadel, having previously been president of its Asian and Japan business. This isn’t strictly true. He left Citadel in 2008, and by 2009 was studying Law at Oxford University, presumably with an eye to switching out of banking. But J.P. Morgan came knocking in 2010 and the degree was never completed.

2. He’s a ‘posh Australian’

According to the FT’s Lex column, Throsby is described as a “posh Australian”, but the “the bar isn’t set very high”.

3. He’s job-hopped, but not too much

Some senior bankers believe the key to a successful finance career is to remain in the same place and seize opportunities as they arise. But Throsby has moved about a fair bit. We mentioned his employers above, but Throsby has worked across the Asia-Pacific and London, and never stayed with one employer for much more than seven years. His longest tenure was at Goldman Sachs, where he stayed for seven years and five months.

4. He gets results, but Barclays has a big challenge in its equities division

During his time at J.P. Morgan, Throsby increased revenues in its equities division from $4.5bn in 2012 to $5.7bn last year, and catapulted it up the league tables. There’s a bigger challenge at Barclays. In the nine months to September 2016, Barclays was the worst of a bad bunch in equities – with revenues down 41% year on year. Deutsche was closest with a 25% decline. Barclays has already pulled out of cash equities trading in Asia, and is largely focused on the U.S. and UK across the investment bank now. Maybe some tough decisions need to be taken.

5. Barclays investment bank is big in the UK, but does it need to be?

Barclays has already said that it’s focusing more on the U.S. and UK, that it won’t upsticks from London after Brexit and that it’s aiming to pick up more British advisory business. Maybe this will mean more hiring in London, but Barclays is among the larger investment banks in the UK anyway. Analysts at J.P. Morgan estimate that 10,000 investment banking employees – or 51% of the total – are based in the UK. The Credit Suisse numbers below are dated – it has moved 4,300 employees out of the UK already – so Barclays may be the biggest investment bank in London. In theory, this isn’t a problem – the latest round of 1,200 job cuts and a global hiring freeze is likely to have reduced this figure significantly. But it’s also a potential target for any necessary cuts.

However, Sir Gerry Grimstone, who took over as deputy chairman at Barclays after Staley took over, told the FT that: “We are moving into a position where we are the only significant investment bank left in Europe.”

JPMorgan jobs in London

6. There are two potential looming issues in the U.S.

Barclays is aiming to build in the U.S. be a ‘tier one’ investment bank, and Donald Trump’s election as President will benefit its focus on fixed income. But despite this, there are some looming clouds for Barclays’ investment bank in the U.S, which Throsby will have to deal with this year. Firstly, while Deutsche Bank has now settled with the Department of Justice over its part in mis-selling mortgage-backed securities, Barclays is still fighting its corner. Barclays is reported to have been willing to pay $2bn to settle the case, but the DoJ wanted double that. Whether this gamble pays off remains to be seen.

Then there’s the capital requirements around its U.S. IHC (international holding company). European banks are required to set up these bodies to abide by the same capital and liquidity requirements as their domestic competitors, even if their HQ is based elsewhere. It’s cost them billions already, but Barclays is among a handful of European banks that look under-capitalised compared to their U.S. peers. This is likely to be a headache this year.

Barclays capital gap 2

7. How can Throsby keep Barclays’ bankers motivated?

Barclays’ hiring freeze has been very effective. It lost 8,000 employees in just four months simply by not hiring anyone and – despite the occasional recruit last year – very few people have made it through the door. That’s all very well when banks across the street are firing people, but what if you need to retain staff? Barclays’ fixed income trading division has been outperforming could be much better positioned this year, and its advisory business has also been doing well. New figures from Dealogic suggest that Barclays rose from 8th to 6th in the overall investment banking revenue league tables. In the U.S, revenues were relatively static, but it gained market share, as did its EMEA team.

Jes Staley made it clear in the bank’s Q3 results that the screws are still on compensation that the people remain one of the “three big levers” to tackle costs. Morale is likely to be low in the investment bank, and a big challenge for Throsby will be keeping the team motivated.

[bernie37] 12/5/2017 16:49

Barclays’ investment bank has got a new chief executive. As we noted yesterday, Tim Throsby has joined from J.P. Morgan to take the malingering business in hand.

Needless to say, Barclays’ group CEO Jes Staley hails from J.P. Morgan and has made several other senior hires from his former employer. Barclays’ new chief risk officer, C.S. “Venkat” Venkatakrishnan, came from JPM. So did Barclays’ new chief operating officer, Paul Crompton. So too did Barclays’ new investment banking CIO, Mark Ashton-Rigby.

Throsby has more to recommend him than a shared past with Jes though. Throsby is good; he is very, very good. In 2010, Financial News reports that Throsby was “personally recruited” to join J.P. Morgan from Citadel by Jamie Dimon. Dimon wanted Throsby to reorient J.P. Morgan’s equities business away from equity derivatives and towards cash products. Throsby did just that, rebuilding J.P. Morgan’s electronic equities trading business and creating an electronic equities trading operation that’s now regarded as “top tier.”

It’s in the numbers that Throsby’s contribution really stands out though. After being promoted to head global equities, Bloomberg notes that he increased J.P. Morgan’s equities revenues from $4.5bn in 2012 to $5.7bn last year. Barclays’ equities revenues declined over the same period. Maybe Barclays’ senior equities staff should be worried for their futures?

Separately, banks are notoriously fussy about who they hire. And with good reason. New research from British polling organization YouGov shows that most people (in Britain at least), experience a serious decline in motivation after the age of 25. Between 18 and 24, a declining majority think high stress is the worthwhile side effect of a life of high achievement. Thereafter, they change their minds. Banks want to hire the minority who are prepared to sacrifice relaxation for achievement throughout their careers.

[gretel1921] 12/5/2017 11:18

Barclays looking very tired !

[portside1] 12/5/2017 09:56

smurf he mis led investors at the agm , why did he not speak on this 18 months at the agm .
in my view the agm was now a false agm and incorrect
the directors must address this it is completely wrong
idid add a lot more on the statement from the agm which I would not of done if had known .

[smurfy2001] 12/5/2017 09:41

Indeed it confused me that he wanted 18 months for what?? When the dividend will increase could be a long time again unclear from the interview.

It's a stock l wish l wasn't invested in.

[portside1] 12/5/2017 09:39

was happy with the statement at the agm , but yesterdays interview of jes on Bloomberg was completely different statement than at the agm ..

not happy with that performance he mis led investors at the agm if is statement on Bloomberg was the real statement why was their no mention of 6 to 18 months
we need clarification on this issue

[dr biotech] 12/5/2017 07:08

The company just can't shake off its prior conduct issues.

[manics] 12/5/2017 06:01

Email prankster posing as Barclays chairman fools embattled Staley

[johnwise] 12/5/2017 05:42

EXCLUSIVE-Barclays rejigs global investment banking team, seeks new hires - sources

[jordaggy] 12/5/2017 01:08

High quality global journalism requires investment. Please share this article with others using the link below, do not cut & paste the article. See our T&Cs and Copyright Policy for more detail. Email [e-mail] to buy additional rights.


Barclays has shaken up the top management of its investment bank as the division’s new boss puts his stamp on the business and seeks to rebound from a disappointing performance in the first quarter.

Tim Throsby, who Barclays hired last year to lead its corporate and investment banking operations, has become interim head of its markets division. He replaces Joe Corcoran, who has been shifted upstairs to be vice-chairman of markets, according to people briefed on the changes.

The move comes after Barclays disappointed investors with a weaker than expected performance in its markets division in the first quarter. The bank blamed this on a drop in US rates trading and a tough comparison with a strong performance in 2016.

However, Barclays insiders denied that the changes were a response to the first-quarter performance, pointing out that it was natural for a new head of a division to want to make changes a few months after arriving.

The bank plans to hire 50 to 100 people, mostly for its markets division. The hiring plan, which follows a long recruitment freeze at the bank, indicates Mr Throsby’s determination to keep pace with US rivals, which have been gaining market share.

In the first three months of this year, Barclays missed out on a rebound in fixed income trading that boosted most major investment banks. Revenues in its markets business fell 4 per cent, as lower revenues from macro and equities trading were partly offset by a surge in credit trading.

Mr Throsby, the former head of equities at JPMorgan, is one of several former colleagues at the US bank that Jes Staley has hired since becoming chief executive of Barclays in December 2015.

The bank aims to appoint a new head of markets to take over after Mr Throsby has run the business for an interim period. It is also looking for a new head of banking in Europe.

Other changes include the appointment of Joe McGrath to a new position as global head of banking, which includes much of its advisory, lending and transactional activities, in addition to his existing role as chief executive of the Americas.

John Miller has been made head of global industry coverage banking, reporting to Mr McGrath, while Jean-Francois Astier will head its global capital markets business. John Mahon will become head of corporate banking. Sam Dean is retiring as head of corporate finance for Europe.

[smurfy2001] 11/5/2017 19:22

Ta.


Barclays has shaken up the top management of its investment bank as the division’s new boss puts his stamp on the business and seeks to rebound from a disappointing performance in the first quarter.

[alphorn] 11/5/2017 18:09

FT just reporting a shake up at Barclays Investment Bank.

[smurfy2001] 11/5/2017 17:21

Good interview and questioning the dividend but non committal on when the dividend will increase (ANGRY FACE).



bernie3711 May '17 - 15:03 - 122137 of 122142 0 0
Jes Staley Says Barclays May Need 18 Months to Turnaround

[davew28] 11/5/2017 17:18

jordaggy,

I agree. I'm not sure he's going to last (as CEO) that long based on this interview. As an investor I am not filled with any confidence, especially not being able to commit to a timescale on improved dividends. Also I've not heard much aired about the impending fines. Does anyone know if it was brought up at the AGM?

[clond] 11/5/2017 17:11

Is that inclusive of doj

[bernie37] 11/5/2017 16:01

Nearly ten years after the financial crisis and US banks look to be out of the woods - but UK lenders are still struggling with fines and payouts

According to the ratings agency Standard & Poor's, the UK's four biggest banks face paying out £19.5billion in fines, compensation and legal expenses this year and next.

[portside1] 11/5/2017 15:32

why did jes not say that at the agm

[jordaggy] 11/5/2017 15:26

My word, the poor man is totally stressed out.

[nasdaqpat] 11/5/2017 15:22

Does he mean in addition to the 10 years the Bank has had so far to 'turnaround'.
What a complete plonker these CEOs are and Staley seems like one of the worst.

[bernie37] 11/5/2017 15:03

Jes Staley Says Barclays May Need 18 Months to Turnaround

[portside1] 11/5/2017 15:00

is it fact natinwide to stop giving mortgages for lease hold

[clond] 11/5/2017 14:25

That ship sailed two weeks ago with Atom