What Smith’s Departure May Mean for ANZ

Reports have indicated that Barclays may be considering ANZ chief executive Mike Smith to replace Bob Diamond, who resigned a few days ago after a series of rate-fixing controversies.

Although Smith has not been given a formal offer, many are wondering what would be the effect on ANZ if he decides to take the Barclays post.

Smith has been largely credited for moving the bank into the global banking scene and expanding its base business in Asia. Some industry analysts say Smith’s early departure may trigger a change in how ANZ does business.

One investor said Smith’s early departure may result to a slowdown of ANZ’s expansion into Asia. ANZ would also have to pay more attention to its long-term succession program to ensure that strategic plans continue.

Two people in ANZ appear to be next in line if Smith resigns. Phil Chronican manages ANZ’s Australian operations. Alex Thursby, meanwhile, is the head of its Asian operations.

Industry analysts say that while Chronican heads the Australian operations, which is the biggest business unit of the bank, Thursby can steer the company if it wants to continue expanding in Asia. Thursby was also handpicked by Smith to run the Asian operations.

Smith’s name surfaced after reports from the Wall Street Journal, indicating him as a possible replacement of Bob Diamond as Barclays chief executive. Barclays is reeling from allegations that it is involved in rate-fixing.

Diamond resigned a few days ago. His chief operating officer Jerry del Missier followed him a few hours later. And days before Diamond resigned, Barclays chairman Marcus Agius also stepped down.