Just days after agreeing to buy Standard Life Bank, Frits Seegers, the hard-driving boss of Barclays’ global retail and commercial banking and architect of that deal, has “resigned” as part of a “broadening” of the bank’s executive committee.
From the RNS on Tuesday morning:As a result of these changes, Frits Seegers, currently Chief Executive, GRCB, will leave Barclays following a handover and resigns as Director of Barclays PLC and Barclays Bank PLC with immediate effect.
Here’s John Varley, Barclays’ chief executive, explaining the sudden and surprise departure of an executive that he hired:
“The structure and promotions we are announcing today are designed to position Barclays strongly in an industry that is experiencing rapid change. At their heart is developing our capabilities to benefit the customers and clients of Barclays within a strong governance framework which is well attuned to the events of the last two years.
Our expanded Executive Committee demonstrates the depth and breadth of talent across Barclays, and I am pleased that Bob [Diamond], Chris [Lucas] and I will be joined by new members who have so much to contribute.
I am sad these changes result in Frits leaving the Group. Frits has had a transformational impact on our retail and commercial businesses globally. I am extremely grateful for the energy and commitment he has brought to Barclays and for the momentum he created during the last three years.”
And the reaction of Mr Seegers:
“I have enjoyed my time at Barclays working within the leadership team. I am also proud of what my team and I have achieved. Barclays is a great company and I wish it all the best going forward.”
Hmm.
Seegers will be replaced by Antony Jenkins, currently chief executive of Barclaycard. Like Seegers, Jenkins was poached by Varley from Citigroup.
Of course the key question is, what prompted this move? Could it be the fact that his division has been overshadowed for the past year by the rapid expansion of Barclays Capital under its all powerful leader, Robert E Diamond Jnr?
Or could the answer be this from today’s statement:
A new business grouping, to be called Global Retail Banking (GRB), comprising UK Retail Banking, Barclaycard and the former GRCB Western Europe and Emerging Markets businesses, will be led by Antony Jenkins, currently Chief Executive of Barclaycard. He will report to John Varley.
A new business grouping, to be called Corporate and Investment Banking (CIB) and Wealth Management, comprising Barclays Capital, Barclays Commercial Bank and Barclays Wealth, will be led by Group President Robert E Diamond Jr. Jerry del Missier and Rich Ricci will be co-Chief Executives of the Corporate and Investment Bank. Tom Kalaris, Chief Executive of Barclays Wealth, will continue to lead the Wealth Management business. Jerry del Missier, Tom Kalaris, and Rich Ricci will report to Robert E. Diamond Jr.
As the Guardian points out Barclays is splitting off its commercial business from the division previously run by Seegers and lumping it in with BarCap, presumably so it can cross selling products to its corporate customers.
Where this leaves the retail bank is anyone’s guess, but traders are already starting to chatter about the prospect of the retail bank being spun off:
Whilst the MKT is absorbing the LLOY & RBS news today ..BARC 9.30 RNS is a clear sign they intend to demerge the group …VALUATION of BARCLAYS will be HIGH .. STRONG BUY HERE ..Related link:
Global ambition - FT
