At Barclays, longtime chief executive John Varley announced his retirement this week, to be effective next March. Taking over for him is Bob Diamond, the well-known president of Barclays Capital, the firm’s investment banking arm.
Since joining the British bank 14 years ago, Diamond has made Barclays Capital one of the world’s biggest investment banks after taking over the U.S. operations of Lehman Brothers in 2008. His success at Barclays Capital—which contributed roughly 90 percent of the bank’s overall earnings last year—earned his record-setting bonuses last year.
Varley stated his desire to contribute to charitable work and focus on his life outside of the corporate environment.
Changes at HSBC
At HSBC, Europe’s biggest banking firm, current chairmen Stephen Green is stepping down to become the new trade minister for the U.K. Coalition Government. HSBC has not yet found a successor, but hopes to name one by the end of the year.
HSBC may appoint its chief executive officer Michael Geoghegan for the job. Another possibility is John Thornton, a former Goldman Sachs executive who has worked in China for many years, a major market for HSBC.
The executive shuffle is occurring during a precarious time for the British banking industry. A U.K. Independent Commission on Banking is mulling whether to force large banks—such as HSBC, Barclays, and the Royal Bank of Scotland—to split their investment banking businesses from their traditional retail banking operations.
