Barclays to overhaul investment banking structure
Head of corporate and investment banking, Rich Ricci said he needs to prepare for more difficult times, and a greater degree of regional leadership and coordination is needed as regulation and clients’ demands change.
Ricci will merge trading and distribution teams across fixed income, commodities and currencies (FICC) and equities into a new ‘markets’ business, which will be led by former FICC head Eric Bommensath.
“We have taken market share through the turbulence of recent times, but with markets remaining challenging we must continue to control our own destiny,” Ricci said in a memo according to Reuters.
Barclays chief executive Antony Jenkins, who took over in July from Bob Diamond following the LIBOR interest rate rigging scandal, is expected make cuts in other parts of the investment bank, and stop activities that pose “reputational risk”.
Morgan Stanley chief executive James Gorman is also looking to make a further round of cuts next year, and told the FT that Wall Street has too many overpaid bankers.
Ricci has been reviewing the management structure of the investment banking arm since becoming sole head of the business in June, after co-head Jerry del Missier moved to become chief operating officer.
He named Jerry Donini, currently head of equities, as chief operating officer for corporate and investment banking and Skip McGee will become chief executive of corporate and investment banking in the Americas.
Patrick Clackson will head the business in Europe, the Middle East and Asia, and Robert Morrice will remain as chief executive for Barclays in Asia Pacific.