Structuring consolidation
l
strategy
global financial markets - management structure
As reported in our last issue (12/98), the managing board was hard at work to define and
build the kind of structural organization which reflects our aim to pursue aggressively the
customer focus strategy. It has taken some time, a period in which the extensive new
product range and supporting systems had to be integrated into Rabobank International's
commercial thrust. The next stage in that development was finalized in the new year when
a realignment of investment banking activities was completed. The concomitant
management reshuffle emphasizes how far we have progressed in that integration process.
Umbrella title
Management reshuffle
Niche role
Managing risk
LZ
What'sNewS Issue 1 Januory 1999 3
For most of us, and at first
sight, the fact that a
number of senior managers
based in London have left the
Pbank is perhaps the most
significant post-euro launch
event of January 1999. Alex
von Ungern-Sternberg,
Michael Ice and Mark
Blundell are among the names
to have left RI in the past few
weeks. Their departure,
according to the managing
board, is a direct consequence
of a realignment of what has
now been dubbed global
financial markets. Rik van
Slingelandt has always
disliked the term 'investment
bank' because he - and the
rest of the board - believes it
creates an erroneous
impression. '1 know a lot of
ipeople make that distinction,'
™e said recently, 'but to make
that distinction is to imply
this is not an integrated part
of our whole organization.'
|ust how integrated our
expanded product offering is,
can be surmized front the new
equally realigned composition
of the managing board and
the global product
management team. STIR's Bill
Cuthbert has been appointed
to the managing board,
effective 18 January 1999,
responsible for global
financial markets. This and
other recent changes are seen
■by the board as crucial to
^creating greater clarity and
understanding of the role of
these products within the
customer focus strategy.
Cuthbert's role will also be to
promote greater integration,
both within RI, but also
within the broader Rabobank
Group. These products and
related business activities, be
they fixed income derivatives
(FID), short-term interest
rates (STIR), foreign exchange
(FX) or global equity
derivatives (GFID), will now
be overseen by Bill Cuthbert
under the umbrella title of
global financial markets. All
cash equity activities will
report to John Lake who
heads the equity management
committee and reports to the
managing board. Additionally,
Lake has been asked to
prepare a proposal for an
integrated cash equity
business and will also act as
advisor to Bill Cuthbert.
Cuthbert's role as GPM at
STIR will be taken over by
the product group's current
business manager, David
Vander. Michele di Stefano
and Teym Eliazov continue
their responsibility for foreign
exchange and GED
respectively. FID will be
reorganized into a cluster of
units: commodities, credit
structuring (CCS); financial
engineering; long term
interest rates (LT1R); and
investment books. Former
head of credit trading within
FID, Jonathan Laredo will
take on the newly created
position of GPM for CCS,
with financial engineering
going to Andrew Rennie. No
announcements have been
made as yet on the
management of the other two
units. An organization chart
(below) visualizes the new
structure. We'11 keep you up
to date on any developments
on structural changes, such as
the proposed management
committee for global financial
markets, whose role will be
ongoing integration with
other activities in the bank.
Integration is clearly the buzz
word now. One key aspect of
the original development plan
for investment banking
products is the creation of a
cluster of niche businesses
operating within a triple-A
environment. According to a
joint statement (with Van
Slingelandt) on behalf of the
managing board, Bill
Cuthbert states: 'The aim is
to create products which can
be distributed to our Dutch
customer base, both retail and
institutional/corporate and
our global focus areas: F&A,
health care and financial
institutions.' To this end, the
statement says, 'key
individuals will be appointed
to act as so-called liaison
managers to interface with the
member-bank network and
other priority operations.'
A sound balance between
infrastructure and growing
business lines remains a prior
ity. The imbalances which
became increasinglv obvious
last year will be the focus of
extensive review and action.
Credit risk management has
been subject to special atten-
tion and a program for
improvement will be
announced in the very near
future - again, we'11 report this
issue as plans are announced.
HEAD OF GLOBAL FINANCIAL MARKETS - BILL CUTHBERT
TRADING SALES
COMMODITIES
LTIR
to be arranged
IR SALES MARKETING
CREDIT STRUCTURING
EUROPE
JONATHAN LAREDO
ANDRES RECODER
STIR
DAVID VANDER
MICHELE Dl STEFANO
NON-STANDARD
PRODUCTS
OPTIONS
DERIVATIVES
BONDS
FINANCIAL ENGINEERING
ANDREW RENNIE
INVESTMENT BOOKS
to be arranged
REPO SECURITIES
COLLATERAL
MANAGEMENT
MM DERIVATIVES
PRECIOUS METALS
M ALM DERIVATIVES
SALES MARKETING
TRADING
FX OPTIONS
RISK ADVISORY
CURRENCY STRATEGY
SALES
MARKETING
SECURITISED EQUITY
DERIVATIVES
STRUCTURED EQUITY
DERIVATIVES
RISK MANAGEMENT
ARBITRAGE
PRODUCT
DEVELOPMENT
GLOBAL MARKETS
AMERICA
ANDY FELDMAN
GLOBAL MARKETS
ASIA
LEE MON SUN
GLOBAL MARKETS
UTRECHT
PETER NORRIE
MARKETING
