It's hard to know the sub-lead in this announcement after the surprising timing of Bob Diamond moving up from President to CEO of Barclays Bank from next March.
Is it that Diamond finally got the job? Is it that he took the London job even though he's rich, aged 59 and lives happily in New York? Is it that another American is taking the reigns at a top British business (BP, Burberrys, Pearson)?
Even though he lost out to John Varley for the top job six years ago, the older Diamond always seemed to me to be the head of Barclays anyway. You certainly saw him on television a lot more.
Why? Follow the money. Something like 2/3rds of Barclays business comes from his part – investment banking at Barclays Capital (known as Barcap). And as president, he also oversaw commercial banking (companies) and the wealth management (rich individuals). He was even involved in the sports promotion and branding, whether its the Barclays Premiership (he loved handing over the Barclays trophy to his beloved Chelsea) or Barclays promotion of London's new bike initiative.
Diamond didn't have to deal with the more sedate Barclays retail operations in the UK and the credit card. Now he does.
Does Barclays become an investment bank with a retail arm? Or does it stay a big retail bank with lucrative add on?
Barclays said again Tuesday its not going to change its strategy of being a global financial giant just because its now run by an investment banker.
I have yet to hear any critical comments about his appointment. Of course his salary and compensation package was criticized by Peter Mandelson earlier this year when he said Diamond was the "unacceptable face of banking ... " because of his salary and bonuses (the numbers were disputed by the bank) and also his heady purchase of bankrupt Lehman's U.S. investment bank business two years ago at a steal (which has now landed Barclays in the middle of a lawsuit).
Diamond is certainly a high flier. He is certainly very wealthy thanks to his huge success at Barclays and doesn't need to work anymore. And now he is coming back to London where he will have to once again deal with the media and politicians picking over any bonuses he may get in the coming years (he did not take a bonus during the economic crisis).
Add to that, the UK is debating whether London-based universal banks (ie: Barclays, HSBC) should be broken up so the volatile investment banking arm (the 'casino side' as one politician here calls it) does not affect the retail banking arm. While Diamond and Varley kept Barclays away from government handouts during the crisis, critics say the investment bank has profited from getting central bank money at rock bottom interest rates.
Diamond will certainly become be one of the public players in this debate.
As one analyst told me: "He must really want this job".
(CNN) – It was an upbeat message from José Manuel Barroso during his first State of the Union speech at the European Parliament. And during it, the President of the European Commission also let slip a proposal that was new to me.
I had the chance to follow-up in an interview after the speech. So I asked him, What exactly was the ‘European Vacancy Monitor’? It turned out to be a suspiciously simple system to help clear up job vacancies across the Union.
All vacancies would be published so someone looking for a job in, say, France could see what’s available in Portugal, or Ireland.
For an economist it makes perfect sense. It’s a straightforward market, matching up supply and demand. But even after you’ve dealt with the administrative challenge, what about the political backlash? The two most explosive issues in the region right now must be immigration and unemployment.
How does the President see his proposed new system working? Watch a clip here and check out the rest on TV later today:
Flagship British company. American CEO. Where have we heard that before?
New Barclays CEO Bob Diamond (left) and BP counterpart Bob Dudley.
Bob Diamond’s appointment as CEO of Barclays comes barely a month after Bob Dudley was named as the new CEO of the embattled oil giant, BP.
The circumstances are obviously very different. One company is paying for the worst environmental disaster in U.S. history. The other is – as far as any bank can be in the current climate – a bailout-free success story.
But what can we learn from the rise of the two Bobs?
Perhaps that the concept of a British or an American company, or any other nationality for that matter, is now void.
In this time of mergers and takeovers the so-called “nationality” of corporations is being diluted.
BP has not been British Petroleum for nine years. A large proportion of its shareholders and employees are American.
And Barclays has swallowed up much of what was the American investment bank Lehman Brothers. If you need any more proof this is the state of things to come, just look at the airline industry.
There’s no getting around it. The corporate world is getting smaller, and Messrs Diamond and Dudley are reaping the rewards.
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