Barclays is Losing its Best

I’m sure everyone’s seen the latest reporting but let me share some light on the continued brain drain and low quality hires.

Post the Marco Valla MD exodus that we’re all well read on, the debt side of the Barclays franchise continues to struggle. Over the past year, really 2-3 years, we’ve continued to lose some of the biggest names in our LevFin / Syndicate senior pool to other firms and better opportunities - kudos to all of them. Nothing to be shocked about, this is generally expected in the life cycle of investment banking.

What’s not expected? The poor decision making around resources and hiring to backfill since then. For example, our FSG team decided to axe the entire LA office, seemingly on a whim (especially given the reports about Oberle’s decisions). Office was started and run by an ex DLJ / UBS / CS hotshot Ted Iantuono and they were an extremely capable technical team by my and my team’s experience with those folks. Go look up the MDs that worked there and where they are today. Don’t know for sure given they are across the coast but rumors were that the entire junior team that was canned landed high quality exits / laterals - kudos to them

Haven’t worked much with Oberle but seems to be ambitious - people whisper about him pushing JF out and being caught up in a conflict of interest (Vanity Fair did an article) but let’s be honest that’s every senior banker.

Now that same FSG team has hired randoms - Scott Willard, who according to reporting has not worked in banking for 2 years?? Jason Short, another unknown, previously canned from Barclays and now on an island with no team in SF? What are we doing? We lose market share to JPM / MS / GS daily and these are the best we can get?

Feels like the bank has no plans for the future of its debts business. European regulations and markets plague us. Colleagues are out the door every day and morale continues to sink. Feels like everyone is interviewing to avoid being the last one on the ship. Sad given the iconic name Barclays once had in this space

4 Comments
 

Based on the most helpful WSO content, Barclays has been facing significant challenges in retaining top talent, particularly in its LevFin and Syndicate senior pool. Over the past 2-3 years, there has been a noticeable exodus of high-profile names to other firms, which is a natural part of the investment banking lifecycle. However, the bank's approach to backfilling these roles has raised concerns.

Key points include:

  1. Brain Drain and Poor Hiring Decisions:

    • The departure of notable figures like Marco Valla and others in LevFin has left gaps in leadership.
    • The FSG team, for instance, made the controversial decision to close its LA office, which was led by Ted Iantuono, a respected figure with a strong technical team. Reports suggest that the junior team from this office secured high-quality exits or laterals.
  2. Questionable New Hires:

    • Recent hires, such as Scott Willard (who reportedly had a two-year gap from banking) and Jason Short (previously let go from Barclays), have been criticized as lacking the caliber needed to compete with top-tier firms like JPM, MS, and GS.
  3. Market Share and Morale:

    • Barclays is reportedly losing market share in the debt space to competitors.
    • European regulations and market conditions are adding to the challenges.
    • Morale within the bank appears to be low, with many employees actively seeking opportunities elsewhere to avoid being left behind.

Overall, the sentiment reflects frustration with the bank's strategic direction and resource allocation, particularly in its debt business. While Barclays once held an iconic reputation in this space, the current trajectory has raised doubts about its future competitiveness.

Sources: Joining LevFin and FSG at this point in the cycle, Thoughts on Barclays in 2020, Deutsche Bank 2019 IB - am I screwed?, https://www.wallstreetoasis.com/forum/investment-banking/future-of-cs-fsg?customgpt=1, 2020 London IBD SA/FT

I'm an AI bot trained on the most helpful WSO content across 17+ years.
 

Honestly, @Synergy_or_Syzygy would likely have better perspective given how engrained he is within the LA network. That being said, rumors say all have landed BB / EB or PE. The fact that the firm has been unsuccessful in poaching people ple for Short’s team is alarming

In NY, it’s all over the place - some walked with no immediate plan (like I said, morale is up and down) but some landed gigs that were more aligned to their goals - LF groups following our senior departures / coverage groups at other firms / PC / IM / Alt funds / start ups

 

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