Deals & People September 7, 2010

Barclays Group Chief Executive to Step Down

Barclays PLC and Barclays Bank PLC announced that John Varley intends to step down as Group Chief Executive, and from the Barclays Boards and the Group Executive Committee, on March 31, 2011.
Reported by

He will be succeeded by Robert E. Diamond Jr., who will be President and Deputy Group Chief Executive, effective October 1, 2010.   

According to the announcement, Diamond currently leads the Corporate and Investment Banking, and Barclays Wealth businesses of the Group.  He has been a member of the Board of Barclays since 2005.  

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Varley will become a senior adviser on regulatory matters to Bob Diamond and to the Board of Barclays until September 30, 2011.  

In addition, Barclays announced that Jerry del Missier and Rich Ricci, will become Co-Chief Executives of Barclays Capital, effective October 1, 2010, in addition to being Co-Chief Executives of the Corporate and Investment Bank.  

Apart from the change in Group Chief Executive, the composition and membership of the Group Executive Committee will remain unchanged, the announcement said.  

Compliance September 7, 2010

General Growth Settles Stock Drop Suit

General Growth Properties, the second-largest U.S. Mall owner, in the process of emerging from bankruptcy, has agreed to a $5.75-million settlement of a 401(k) stock-drop case.
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Under the terms of the settlement, General Growth’s insurer, St. Paul Mercury Insurance Company, will fund the settlement amount, according to a court document filed in U.S. Bankruptcy Court in New York.

The settlement covers a consolidated class-action suit in which participants claimed the company violated the Employee Retirement Income Security Act (ERISA) by continuing to keep a company stock investment option after it was no longer prudent to do so. Filed in May 2009, the case joined four separate suits over the company stock issue.

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Under the terms of the settlement, General Growth agreed to hire an independent fiduciariy to be paid by the company or its insurer to provide a separate evaluation of the agreement, according to the court document.

General Growth, based in Chicago, filed for bankruptcy last year after failing to refinance its debt load. The company plans to emerge from bankruptcy this year with $8.4 billion in financing, according to a Bloomberg news report of the settlement.

 

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