Two fascinating aspects of Bill Winters’ appointment as the next CEO of Standard Chartered are: why did he choose Standard Chartered when one of the banking industry’s hottest properties has pretty much been offered every other bank CEO job out there since he was ignominiously ousted from JP Morgan?
And how will the British political establishment take to another American ‘casino banker’ at the helm of a UK bank (think Bob Diamond); one who’s built his career, formidable reputation – and made a ton of money – in the sinister world (as they will see it) of derivatives. You’d imagine Winters’ role on the UK’s Independent Commission on Banking will have softened any propensity to demonise his persona, but with politicians you never know.
The quote attributed to him in the press release, that StanChart was “one of the truly great opportunities in global banking”; that it was a “special bank”, that he was “struck by its amazing network, respected brand and powerful client relationships across the countries which will drive the future growth of the world economy” was truly the stuff of PR quote-makers’ dreams.
But given what’s happened at the bank since its impressive q-on-q profits record came to an end, since it got hammered over US sanctions busting, has seen its shares today 45% lower than two years ago, and is in the process of rethinking what it wants to be, where and to whom, there are those who would describe StanChart today less of a special bank, more a special-needs bank.
Winters has been in the frame for the CEO slots at RBS, Barclays, Lloyds, UBS and doubtless others since 2009, where he was either formally offered the roles or was at least approached. I guess none of those would have been a walk in the park either.
Outgoing chief Peter Sands was clearly on the way out after shareholder and general dissatisfaction at the bank’s performance grew louder over 2014. The clear-out, though, of Sands, chairman John Peace, Asia CEO Jaspal Bindra, and changes to the board – including the appointment of Gay Huey Evens whom Winters will know from her years as a regulator, banker and her ISDA responsibilities – went further than many observers will have expected.
That will at least give Winters some room to manoeuvre as he gets his feet under the table. I suspect getting the job is the beginning of his challenge not the end. I also suspect his early achievements will not just be putting the wheels back on the StanChart wagon but withstanding any political onslaught that emerges if things don’t go well quickly.
