Barclays Combines Securities Businesses in Overhaul

Barclays Plc’s investment banking chief, Rich Ricci, will combine part of its fixed income and equities operations in his first overhaul since taking sole control of the operation in June.

The bank promoted Skip McGee to chief executive of corporate and investment banking in the Americas and Jerry Donini was named chief operating officer of corporate and investment banking, according to an internal memo seen by Bloomberg. The trading and distribution teams in fixed income, commodities and currencies and equities will be put into a single markets business led by Eric Bommensath.

Chief Executive Officer Antony Jenkins, who succeeded Robert Diamond in August following the Libor-rigging scandal, is reviewing which parts of the company will be sold or shrunk as the bank seeks to boost profitability and overhaul its culture. Ricci’s changes, following a review that started in July, are aimed at helping the bank sell more products to corporate clients.

“Ricci has been wanting to get on the front foot since Diamond left and this is the first step in rationalizing the bank, making it more efficient, while working more closely together and shedding businesses with reputational issues,” said Christopher Wheeler, a London-based analyst at Mediobanca SpA. “This is all about trying to create a degree of certainty, post-Bob.”

Cost Cutting

Barclays’s corporate and investment bank eliminated more than 500 million pounds ($810 million) of expenses in the past 18 months, Ricci said last month. Ricci at the time said the bank would review products and services that are no longer appropriate, regardless of financial return. He cited “elements” of the bank’s tax advisory business and the sale of structured products to small-and medium-sized businesses.

Barclays was fined a record 290 million pounds in June by U.S. and U.K. regulators for manipulating the London interbank offered rate, leading to the departure of Diamond, the chairman and the bank’s chief operating officer.

Ivan Ritossa, the securities unit’s head of Latin America, central and eastern Europe, the Middle East and Africa, Guglielmo Sartori di Borgoricco, head of distribution will leave. Michael Evans, head of human resources at the unit, will step down and be assigned a new role at a later date. Iain Abrahams, who became an executive vice chairman of Barclays last year, will depart, Barclays said.

Jerry del Missier was named COO on June 22, leaving Ricci, 49, in sole charge of corporate and investment banking. He resigned on July 3.

Single Committee

The bank will have a single executive committee for corporate and investment banking which will include John Winter, the CEO of corporate banking, the bank said.

“These organizational changes will position the firm best to take advantage of the changing market landscape, to continue delivering outstanding value to our clients, and to become the ‘go-to’ bank for all our stakeholders,” Ricci said in the memo.

Ritossa, Sartori di Borgoricco and Abrahams didn’t immediately respond to phone calls and e-mails requesting comment. Evans couldn’t be immediately reached.

The lender may cut its investment bank by 20 percent, the Sunday Times said last month after an interview with incoming Chairman David Walker. A final plan will be presented to shareholders in February, Jenkins said last month.

(Corrects to show Evans is remaining at Barclays in seventh paragraph of story first published Oct. 4.)
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