JPMorgan has replaced Credit Suisse as Barclays’s corporate broker and this is another change new chairman John McFarlane is making to cut costs and simplify business at the bank, according to Reuters.
Corporate brokers are essential members of a banking team as they work with the institutional investors and public companies to become a trusted, experienced adviser for both in the relationship. Deutsche Bank will remain as one of Barclays’ brokers, despite asking other investment banks to pitch for the role.
At Barclays’s annual shareholder meeting in April, Macfarlane said that the bank’s focus will be to cut costs, simplify business and improve returns for shareholders. With the addition of JPMorgan as corporate broker, Barclays is predicted to succeed as according to Reuters, “JPMorgan retains the crown in terms of the most broking relationships, following its purchase of British brokerage Cazenove.”
Reuters continues to report that “JPMorgan has 34 FTSE 100 clients and 90 FTSE 250, followed by Bank of America Merrill Lynch, UBS and Morgan Stanley.”
Many other London banks have changed brokerships recently, for example Royal Bank of Scotland have chosen Bank of America Merrill Lynch, as the government is prepares to sell their 78% stake in the bank later in the year.
Standard Chartered also replaced UBS and appointed Bank of America Merrill Lynch as broker, in addition to JPMorgan.
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