The last time American finance was operating in a high-inflation, high-interest rate environment, like the current economy, was nearly 40 years ago. That means most current executives, who came up in the era of easy money, are unfamiliar with the complexities of running a bank under today’s conditions. As the top brass at financial institutions start to accept that interest rates will likely be higher for longer, they’re scrambling to find leaders with the skills to succeed in such an unpredictable environment. Some CEOs are deciding that they need to make drastic, expensive and often unpopular institutional changes to help them keep up. That means it's time to restructure. Citigroup CEO Jane Fraser announced a sweeping restructuring effort last week meant to rearrange the bank’s leadership. Wells Fargo, Truist, Barclays and Goldman Sachs have recently made similar efforts. I spoke with David Schiff at West Monroe about what comes next. https://lnkd.in/emCYvS4p #wallstreet #banking #leadershipdevelopment
Boohoo. My Industry has been wrestling with financial uncertainty for decades with no parachute. Cry me a river.
Former CHRO & Global HR Leader | Mentor | Organizational Transformation | Cross Cultural Experience | Employee Engagement l Lifelong Learner
1yI think the writer is nice about rates 40 years ago. They weren't the same as today. 1983 Fed Funds rate was 9.09%, Mortgage rates were 16.04 and Prime rate was 10.79. Significantly higher than today. I remember as my first mortgage was at 16%! So, while the basic premise of the article is correct in saying most of today's bank leaders have not had the experience to deal with today's 'high' rates, maybe its time to look for leaders who were around then and either seek their counsel or bring them back for a year or two to deal with this mess.