Lloyds TSB Private Banking has made
sweeping changes to its top management line-up in Geneva and
London. It comes only weeks after turmoil at the bank’s large
operations in Geneva saw a number of staff depart.

Its international wealth management
and private banking businesses are being consolidated under a
single managing director, Russell Galley.

Piero Grandi, who ran the
Geneva-based global high net worth (HNW) operations as managing
director, has been moved from this role.


Switzerland remains Lloyds
largest base

Switzerland remains the leadership
location of the new international wealth business, reflecting the
fact that Lloyds Geneva is the driving force behind the British
bank’s global private banking operations, particularly investment
management. Out of a global workforce of more than 850, some 400
work for the private bank in Geneva.

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At the same time, a domestic
division, UK Wealth, is being created and will be headed by Philip

This combines the UK Private Bank
and UK global HNW business. Grant previously led the UK Private
Banking business.

After the shake-up, Grandi will now
play an “important role” supporting the business during the planned
transition, particularly with regard to supporting relationships
with clients and regulators, and working with Russell Galley,
Lloyds stated.

He will continue to report to group
director, Antonio Lorenzo, the bank added, without stating what
future position he would hold.

Grandi became head of Lloyds in
Geneva in 2008, after previously working for American Express Bank
and Citigroup. His reign had proved controversial in recent months.
After a combination of firings and resignations in Geneva, about 25
staff departed the bank in April.


Staff disruption unsettles

Lloyds is understood to have
dismissed some 15 staff from its trust and banking departments in
Geneva, firings which resulted in 10 more personnel, including
senior investment specialists, deciding to hand in their

A number of these quickly moved to
rivals. Barclays Wealth recruited five bankers from Lloyds to
reinforce its Geneva-based international private banking

Mike Ferguson joined as a managing
director. Sylvie Orsatti, Sana Al-Habal, Philippe Sala and Fawziyah
Khazal all joined as director-level private bankers.

Elsewhere, Urs Emmenegger, head of
strategic development for Lloyds in Geneva, is joining Clariden Leu
to head a new combined business operation for the Swiss bank.

It is not entirely clear what
caused such staff disruption in Geneva, apart from moves to cut
staff costs. However, some staff have been critical of a decision
to move part of the bank’s operations to Nyon, a small town on the
shores of Lake Geneva, 24 kilometres from the city.

The new purpose-built premises at
Nyon are considered by Lloyds TSB management to offer better
working conditions for staff, but some personnel said the new
location would be inconvenient.


Simplification behind

Explaining the latest shake-up in
senior ranks, Lloyds said the new structure would give the private
bank new focus and simplified the business.

The International Wealth operation
will cater for all of Lloyds’ wealth customer segments
internationally: mass affluent, HNW and ultra HNW.

Nonetheless, the appointment of new
head Russell Galley caused some raised eyebrows, as he has largely
had experience in retail and mortgage banking rather than classic
private banking.

Most recently he was managing
director of Savings Investment and Protection for Lloyds Banking
Group; leading the UK’s biggest savings institution, with deposits
of more than £200bn ($323bn) and the UK’s largest bancassurance

With previous experience as
managing director of the UK’s largest unsecured lending portfolio
and a £300bn mortgage portfolio; he has extensive product
expertise, Lloyds stressed.

“I believe that we have a unique
opportunity to deliver an outstanding international wealth and
private banking business and I am really looking forward to leading
it,’’ Galley said in a statement.

“We remain absolutely committed to delivering for our customers
by ensuring that they remain the focus of everything we do,” he