However, his appointment as the head of the board of Barclays’s ring-fenced bank is likely to raise eyebrows because of his involvement at B&B, where he spent five years as a non-executive director until he stood down when the stricken mortgage lender was nationalised in 2008. Even so, bosses at Barclays are unlikely to have picked Sir Ian if they were concerned his association with B&B would lead to the PRA blocking his appointment. The incoming ring-fencing rules, which will force firms to separate their retail and investment banking businesses, are being brought-in as a direct result of the crisis that led to B&B’s demise. Barclays plans to separate out its businesses during Easter 2018.
Barclays is looking to appoint a former director of collapsed mortgage lender Bradford & Bingley (B&B) as the first chairman of its new subsidiary. The banking giant is creating a new retail bank in order to comply with stringent ring-fencing rules. The appointment of Sir Ian Cheshire could be confirmed in the new year, subject to the approval of the Prudential Regulation Authority (PRA). The ring-fencing rules mandate that firms separate their retail and investment banking businesses. This will help to prevent crises like the credit crunch that struck B&B in 2008.