Barclays unit lands two top financiers

Canada's banks face increased competition from global rivals, with Barclays Capital turning up the heat Friday by landing rainmaker Michael Wilson and star deal maker Bruce Rothney as leaders of its domestic investment bank.

Mr. Wilson, a former federal finance minister and ambassador to the United States, is stepping up as the new chairman of Barclays Capital Canada, reprising a role that he played to rave reviews for UBS Canada before moving to Washington in 2006.

Mr. Rothney will head the Barclays unit after two decades of working on takeovers and financings for RBC Dominion Securities. He stepped down Thursday as deputy chairman of the Royal Bank division.

These two high-profile hires are the latest in a string of expansion moves by global banks in the Canadian market, driven in part by the rising profile of domestic energy companies, insurers and banks. Australia's Macquarie Group Ltd. built a national presence with three large acquisitions in as many years, JPMorgan recently added Calgary-based investment bankers to its energy trading team in Alberta. Credit Suisse, already well-staffed in Toronto, is expected to expand in the oil patch in coming months.

While some investment dealers blow hot and cold on Canadian markets in step with market cycles, most global banks now sport 50-person-plus offices in this country, staffed by home-grown talent.

Its expansion in Canada comes as Barclays PLC emerges as a global powerhouse in the wake of the 2008 market meltdown. The London-based firm bought the U.S. operations of bankrupt Lehman Brothers, and deft footwork in the wake of the crisis by an executive team that includes Canadian-born Barclays Capital president Jerry del Missier convinced the two financiers to join.

"I was plugged into the crisis from Washington, and I watched how Barclays' combination with Lehman took shape. They've made tremendous progress, and I came to like their people, and respect their client focus," said Mr. Wilson, 72, who stepped down last year as our man in Washington.

"Barclays fuses Europe, Asia and America in a unique way, and the future of Canadian companies is increasingly tied to their ability to operate in global markets," Mr. Rothney said.

Mr. Wilson served as finance minister and industry minister under former prime minister Brian Mulroney, then left politics to return to Bay Street in 1991, rejoining RBC Dominion at the same time Mr. Rothney landed at the firm after a stint at Goldman Sachs.