- Throsby ran global equities business at JPMorgan from London
- Barclays unit he’ll oversee also includes international cards
Barclays Plc named JPMorgan Chase & Co.’s Tim Throsby to run the corporate and international division, including oversight of the investment bank, as Chief Executive Officer Jes Staley filled the final vacancy on his top management team.
Throsby, 50, will take on the role in January, subject to regulatory approvals, Barclays said in a statement Monday, a day after Bloomberg News reported the bank’s plans to hire the executive. Throsby joined JPMorgan in 2010 and was named global head of equities two years later, running the business from London.
Before joining Barclays in December, Staley spent more than three decades at JPMorgan and has recruited extensively from the U.S. firm as he reshaped his senior management team. Throsby will join other senior alumni on the executive committee including Chief Risk Officer C.S. “Venkat” Venkatakrishnan and Chief Operating Officer Paul Compton, who were hired earlier this year.
“Turning around the investment bank is a massive job, but the good news is that he’s got a boss who understands what’s going on, and he’s fortunate to be coming in after a lot of the bad stuff has been dealt with,” said Christopher Wheeler, an analyst at Atlantic Equities. “Staley keeps going back to drink at the same trough: JPMorgan has a deep bench, but it’s still painful for Jamie Dimon to keep losing these people to Jes.”
A spokeswoman for JPMorgan declined to comment.
Staley is relying on Throsby to shore up the performance of the investment bank, which has been criticized by investors for its low profitability, billions in misconduct fines and a drop in trading revenue as European growth falters. The CEO has described calls to exit the business as “shortsighted,” but has pared its scope, closing offices in seven Asian countries, Brazil and Moscow, and removing an additional 1,200 jobs.
The new securities chief will also have to navigate the fallout from Brexit and the potential loss of the U.K.’s passporting rights, which allow investment banks to sell their services across the European Union and are a cornerstone of the City of London’s success. The investment bank has been without a head since Tom King left in March, when Barclays was split in two to comply with British rules requiring the separation of banks’ consumer and trading operations.
As head of the new corporate and international division, Throsby will also oversee the wealth management and U.S. and German credit-card businesses. Staley has been directly responsible for the securities unit since King’s departure, assisted by deputy-head Joe Gold, who is retiring in the coming months to pursue interests outside banking, despite being offered other roles at Barclays, according to a memo sent to staff Monday. Ashok Vaswani leads the ringfenced retail unit, Barclays U.K.
Throsby, who is Australian and attended the universities of Sydney and Oxford, England, started his career at Macquarie Group Ltd. and worked at Goldman Sachs Group Inc., Lehman Brothers Holdings Inc. and Citadel LLC before joining JPMorgan as global head of equity derivatives in 2010. Staley was running JPMorgan’s investment bank then, making this the second time he’s hired Throsby.
Throsby helped boost JPMorgan’s equities trading revenue from $4.45 billion in 2012 to $5.69 billion last year. Barclays’ equities revenue has declined over the same timeframe, according to data from Bloomberg Intelligence.
“The team Jes has assembled at least is coherent in their JPMorgan background, which is a positive,” said Sanford C. Bernstein analyst Chirantan Barua. “But then Tim joins straight in the middle of a slump and goes into a bank that hasn’t got out of capital problems as yet.”