Barclays's Staley offers investment bank post to ex-JP Morgan colleague

New Barclays boss Jes Staley’s offer to another JP Morgan alumni to run the lender’s investment bank was rejected, to the relief of some observers, Reuters reported.

A person familiar with the matter told the newswire that Staley had offered the post to Blythe Masters.

She was the chief financial officer of JP Morgan’s investment bank between 2004 to 2007, before moving to the commodities business - which she turned into one of the largest outfits in that space.

However, she came under the spotlight in July 2013 when JP Morgan agreed to pay $410m (£274m) to settle allegations from the US Federal Energy Regulatory Commission that units under Master’s supervision had manipulated power markets in the country for their businesses’ profits.

If she were to join Barclays then the top three executives, including its finance chief, would come from JP Morgan.

The current head of the unit, Tom King, threatened to leave last summer following a row with then chief executive Antony Jenkins, contributing to the latter’s downfall, the same sources said. He was finally persuaded to stay by the lender’s chairman, John McFarlane.

Michael Holland, a fund manager at Holland&Co. told Reuters Masters would be a good choice on the basis of merit, but pointed out that her past controversies would make her a tough sell to investors.