Hans-Joerg Rudloff’s retirement at age 73 comes at an unhelpful time for Barclays.
Mr. Rudloff, the British lender’s chairman of investment banking, is stepping down after a distinguished career that spanned five decades â€" long enough for any banker. Mr. Rudloff’s achievements are myriad. A doyen of the euro bond market, which he helped create in the 1960s, ’70s and ’80s, Mr. Rudloff also saw the potential in Russia and central Europe in the 1990s, long before emerging markets became fashionable.
Right now, farsightedness is precisely what Barclays needs as the future of the investment banking industry and the British firm’s place within it are not clear. Leverage limits and American regulations on the capitalization of the bank’s subsidiaries constrain its global strategy. Mr. Rudloff has been here before. He transformed Credit Suisse First Boston, which he ran from 1989 to 1994, into a contender to Wall Street at a time when most felt the United States banks would dominate.
Barclays’ ability to compete on equal terms with Wall Street owes much to Mr. Rudloff’s backing of its 2008 purchase of Lehman Brothers. Without that deal, Barclays’ investment bank would be in a tougher bind now: Last year, equities trading and advisory â€" the remains of the old Lehman â€" outshone fixed-income trading, the core of the old Barclays Capital.
True, Mr. Rudloff’s strong ties to Robert E. Diamond Jr., the former Barclays chief executive, mean that his exit helps break with a troubled recent past. But that is offset by the loss of Mr. Rudloff’s 16 years of institutional memory. A continuity figure and mentor could help the new chief executive, Antony Jenkins, win support as he seeks to foster needed cultural change. There is much in Barclays’ past that underpins its future value.
Dominic Elliott is a columnist at Reuters Breakingviews. For more independent commentary and analysis, visit breakingviews.com.
