Morgan In Frame To Chair Standard Chartered

An Australian banker has emerged as a potential chairman of Standard Chartered (HKSE: 2888.HK - news) , the emerging markets lender which this week reported its first annual loss for more than 25 years.

Sky News has learnt that David Morgan, who previously ran Westpac, is one of a "significant number" of senior financiers sounded out about replacing Sir John Peace at the helm of Liverpool FC's shirt sponsor.

Mr Morgan is the managing director in charge of European and Asian investments at JC Flowers, the financial services-focused private equity group.

He sits on the boards of a number of companies in which Flowers has invested, including OneSavings Bank (Stuttgart: 2OS.SG - news) , the fast-growing UK-based challenger bank.

Mr Morgan is by no means certain to be offered, or to accept, the Standard Chartered chairmanship, a City source said on Friday.

The identities of other candidates being approached about the role is unclear.

Reports last month suggested that the search for a new chairman had stalled, with the absence of firm news about an appointment more than a year after Sir John announced his decision to step down this year underlining the recruitment difficulties facing global banks.

Standard Chartered has been hit by the combined headwinds of a slowdown in Asian economies and what its new chief executive said had been insufficient attention to credit risk.

Bill Winters, a member of the Independent Commission on Banking which recommended major reforms to the UK banking industry in 2011, was drafted in as Standard Chartered's boss a year ago, an appointment which pleased investors.

However, Mr Winters is said to have been taken aback by the scale of the challenge confronting him.

He has already announced thousands of job cuts and a major restructuring of the bank's operations, but said this week that 2016 would present another "challenging environment".

On Tuesday, Mr Winters reported that Standard Chartered had made a pre-tax loss of $1.5bn in 2015, saying "it rips at our soul every time we look at these numbers".

In addition to the specific problems of Standard Chartered, bankers complain that regulatory changes have made it more difficult to attract board members, with stiffer penalties now facing those who are deemed culpable for the collapse of their institution.

Standard Chartered declined to comment.