Huw Jenkins

Huw Jenkins is vice chairman of the board of BTG Pactual, based in London. He is a managing partner of the firm as well as a member of the Global Management Committee. Jenkins is also chairman of Engelhart Commodities Trading Partners (ECTP), formerly known as BTG Pactual Commodities, which was spun out of BTG Pactual in 2016.[1]

For other people named Huw Jenkins, see Huw Jenkins (disambiguation).

Huw Jenkins at the Financial Times CNBC Davos Nightcap, 26 January 2012

Jenkins joined BTG Pactual as a consultant in 2009 and became a partner in 2010.[2] Prior to BTG he held several positions at UBS Investment Bank, including chairman and chief executive officer, global head of equities, head of equities for the Americas and head of Asia-Pacific equities. Prior to joining UBS, he worked at Barclays de Zoete Wedd and Hill Samuel.

Professional life

Based at BTG Pactual's London office since late 2009,[3] Jenkins is responsible for the international businesses. In 2010 BTG Pactual raised $1.8bn from a group of prestigious investors including Government of Singapore Investment Corporation (GIC), China Investment Corporation (CIC), Ontario Teachers' Pension Plan (OTPP), Abu Dhabi Investment Council (ADIC), J.C. Flowers & Co, RIT Capital Partners and Lord Rothschild’s family interests, the Santo Domingo Group, EXOR, the investment company controlled by the Agnelli family, and Inversiones Bahia, the holding company of the Motta family.

Prior to joining BTG Pactual, Jenkins worked at UBS Investment Bank (1996-2008). Jenkins joined the firm in 1996 as head of Asian Equities. In 1997 he was appointed co-head of Asia Pacific Equities and in 1998 head of Asia Pacific Equities. In 1999 he became co-head of US Equities and in 2000 he was appointed head of Equities for the Americas and later UBS's global head of Equities. Jenkins was appointed CEO of UBS Investment Bank in July 2005 and chairman and CEO of UBS Investment Bank in January 2006, holding these posts until September 2007. During Jenkins time as CEO, he expanded the fixed income risk of UBS.[4] After UBS began to suffer losses in the subprime mortgage crisis Jenkins stepped down to an advisory role in October 2007. Other companies where Jenkins has been employed include: Barclays de Zoete Wedd (1987-1996), Hill Samuel (1986-1987) and HSBC (1981-1984).

After leaving UBS Investment Bank in 2008, Huw Jenkins purchased a farm in Tuscany and spent his time "farming olives, producing an annual 5,000 litres of olive oil, even selling it alongside his wife from a stall on King’s Road in London’s Chelsea district".[5]

In 2013 Jenkins and other UBS executives gave evidence on Libor rigging to the UK Parliamentary Commission on Banking Standards.

Education

Jenkins received his bachelor's degree with honours in sociology and psychology from the University of Liverpool, his MBA from the London Business School and has recently participated in the Executives in Residence programme at the London Business School.

Charitable activities

Jenkins served as chairman of Great Ormond Street Hospital children's charity, the Tick Tock Club, from 2009 to 2012, as a member of Liverpool University Development Foundation from 2010 to 2014 and vice-chairman of the London Business School's capital campaign from 2014 to 2016. He was a board member of the Lincoln Center in New York City from 2005 to 2008.

Controversy

LIBOR Rigging

At the United Kingdom's Parliamentary Commission on Banking Standards (PCBS), which is headed by the Archbishop of Canterbury of the Anglican Communion, Justin Welby, as well as Conservative MP Andrew Tyrie,[6] four UBS witnesses, including Huw Jenkins as the CEO of UBS Investment Bank, were invited by the PCBS to give testimony about the failure to detect rigging of the London Interbank Offered Rate (LIBOR), which resulted in the bank being fined $1.5 billion.[7][8][9]

The PCBS found that "Libor [was] being manipulated for years."[10] Closing the proceedings, Andrew Tyrie told the UBS executives that "You were ignorant and out of your depth."[11][12] Huw Jenkins stated in his testimony that "It [Libor fixing] was a very engrained part of the business areas, so it would not surprise me if it was going on before that [for many years]. I'm clearly deeply sorry we didn't spot this.[13] It is clearly a failing in our systems and controls and our culture that it wasn't highlighted."[14][15] After the PCBS hearings had ended, Jenkins submitted a letter to the PCBS, making it clear that the closing comments made by the Chairman had not been levelled against him individually. He rejected the charge of incompetence and pointed out that several investigations, including those led by the U.S. Department of Justice and U.K. Financial Standards Authority, had concluded he had no knowledge of the practice of rate rigging.[16]

Fraudulent misrepresentation claim by former BGT Pactual Asia Ltd employee

An ex-employee of Hong Kong subsidiary BGT Pactual Asia Ltd, Zeljko Ivic, filed a claim in late 2013 alleging Jenkins and Banco BTG Pactual SA CEO André Esteves made fraudulent misrepresentations to induce him to sign agreements with Banco BTG Pactual SA.[17][18] Ivic claimed he had played a key role in Banco BTG Pactual SA's IPO, raising funds from nine entities, including the China Investment Corporation, GIC Private Limited, as well as the Agnelli and Rothschild families, for which he was promised a partnership and shares.[19][20] Ivic valued his claim at some US$20 million. He started proceedings after being dismissed in October 2013.[21][22][23] Jenkins was reported to have been served a writ in the case during a Hong Kong visit.[24]

As of February 15, 2017 the case was still ongoing. BTG Pactual has said that he is a disgruntled former employee and that his claim is completely without merit.[25]

Pactual sale to UBS Investment Bank and resale to BTG

Arthur Rutishauser in Sonntagszeitung argued that the way André Esteves acquired 27% of his bank is an example of an insider case: Esteves sold the bank in 2006 for 3.1 billion Swiss Francs to UBS, where at that time Huw Jenkins was a key decision maker, and heavily involved in that transaction.[26] Suffering financial constraints linked to the credit crisis, UBS put Pactual up for sale in 2009 as part of an effort to reduce its risk profile and improve its balance sheet.[27] Esteves repurchased Pactual in 2009 for 2.5 billion Swiss Francs after being allowed to leave UBS to set up BTG.[26] Huw Jenkins left UBS in 2008, and subsequently joined BTG Pactual in 2009 as a consultant, becoming a partner and board member at BTG Pactual in 2010.[28]

BTG Pactual Purchase of BSI

On 14 July 2014, BTG Pactual purchased Banca della Svizzera Italiana (BSI), with the purchase being subject to approval by the Swiss Financial Market Supervisory Authority (FINMA).[29] The CEO of FINMA is Mark Branson who was previously the CEO of UBS Securities Japan Ltd.[30] Of significance, Branson reported directly to Huw Jenkins, the CEO of UBS Investment Bank and who is now a partner and director of BTG Pactual.[31][32] Branson also worked alongside André Esteves, now CEO of BTG Pactual while both worked at UBS in its management committee in November 2007 during which time Andre Esteves allegedly committed insider trades.[33] Esteves settled the claim brought by the Italian financial regulator in April 2012.[34] BTG Pactual announced February 22, 2016 that it had entered into a definitive agreement under which EFG International would acquire BSI.[35] FINMA subjected the transaction to a rigorous review, and it was approved on May 26, 2016. BTG Pactual maintains a minority stake in EFG International.[36]

References
  1. "BTG Plans to Spin Off $1.6 Billion Commodities Arm as Engelhart". Bloomberg.com. 8 April 2016. Retrieved 28 February 2017.
  2. "Subscribe to read". www.ft.com. Retrieved 28 February 2017. Cite uses generic title (help)
  3. "Subscribe to read". www.ft.com. Retrieved 28 February 2017. Cite uses generic title (help)
  4. http://www.tagesanzeiger.ch/wirtschaft/unternehmen-und-konjunktur/Wie-eine-Gruppe-brasilianischer-Banker-von-der-UBS-profitierte/story/12660098 Tages-Anzeiger, issue of March 7, 2010
  5. Jenkins, Patrick (6 December 2010). "Ex-UBS man's key role in Brazil bank". Financial Times. Retrieved 11 January 2015. When UBS blew up in the autumn of 2007, Huw Jenkins – head of the investment banking unit and the man ultimately responsible for the toxic assets that wreaked havoc on the Swiss group – was the first big shot to carry the can. Like most of those who were ejected from their jobs during the financial crisis, he swiftly disappeared from view. For a good part of his time since then, Jenkins took the concept of gardening leave literally. We bought a small farm in Tuscany in 2008,” he says. “In 2008 and 2009 I was there all summer.” His time was spent farming olives, producing an annual 5,000 litres of olive oil, even selling it alongside his wife from a stall on King’s Road in London’s Chelsea district. Three years on and Jenkins has popped up at BTG Pactual, the Brazilian bank that until 18 months ago was a subsidiary of UBS.
  6. Hartmann, Christian (7 January 2013). "Former UBS bosses face UK grilling on bank standards". Reuters. Retrieved 11 January 2015. The PCBS has spent most of its time so far assessing structural reform - last month it said legislation should be introduced to break banks up if standards slip - and is now expected to shift its focus to standards and culture. The influential cross-party commission is headed by Conservative Andrew Tyrie and also includes the incoming head of the Anglican Communion, the next archbishop of Canterbury, Justin Welby.
  7. Serdarevic, Masa (10 January 2013). "'A mercenary UBS with no culture', apparently". Financial Times. Retrieved 11 January 2015. Giving evidence to the UK’s Parliamentary commission on banking standards joint committee were Marcel Rohner, former CEO; Huw Jenkins, former IB CEO; Jerker Johansson, also former IB CEO and Alex Wilmot-Sitwell, former joint-IB CEO. In a nutshell, the response can be summed up as, ‘we had bigger fish to fry’ trying to make sure the bank survived the financial crisis at all. The Libor thing didn’t made it onto our radars. Unfortunately, that also led to a $1.5bn fine last month for manipulating the rates.
  8. Roland, Denise (10 January 2013). "Banking Standards Commission accuses former UBS bosses accused of 'staggering ignorance' over Libor rigging - Telegraph". The Daily Telegraph. Retrieved 11 January 2015. The quartet of former executives - including ex-group chief executive Marcel Rohner and Huw Jenkins, former head of UBS's investment arm - came under fire as they appeared before parliamentarians to give evidence over failings at the Swiss bank which allowed Libor-rigging to continue unnoticed for several years. They were grilled on how they missed what regulators described as an "epic" scandal at UBS, which saw the bank hand $1.5bn (£940m) to regulators in fines last month.
  9. Scott, Mark (10 January 2013). "British Panel Castigates Ex-UBS Officials at Hearing". The New York Times. Retrieved 11 January 2015. Several former senior executives at UBS were labeled negligent and incompetent on Thursday for failing to detect illegal activity that caused the Swiss bank to pay a $1.5 billion fine to global regulators. On the second day of hearings at the British Parliament related to the recent rate-rigging scandal, Marcel Rohner, the former chief executive of UBS, and a number of former heads of the firm’s investment bank were questioned about whether they were aware that some 40 people had altered major benchmark interest rates for financial gain.
  10. Thomas, Charlie Thomas (1 October 2013). "UBS Chiefs Blame 'Mercenaries' For Libor Rigging Under Grilling From MPs". The Huffington Post. Retrieved 11 January 2015. Ex-group chief executive Marcel Rohner and former head of UBS's investment arm Huw Jenkins were among the representatives called before the commission to give evidence over failings at the Swiss bank which resulted in Libor being manipulated for years.
  11. Roland, Denise (10 January 2013). "Banking Standards Commission accuses former UBS bosses accused of 'staggering ignorance' over Libor rigging - Telegraph". The Daily Telegraph. Retrieved 11 January 2015. Sheepish silence from the former executives followed Mr Tyrie's closing remarks: "We've heard of appalling mistakes that can only be described as gross negligence and incompetence. "You were ignorant and out of your depth." The ex-board members admitted they presided over a raft of shortcomings at UBS which Dr Rohner said was among those institutions that "had more serious problems than others."
  12. Treanor, Jill (10 January 2013). "Former UBS bankers accused of 'gross negligence' over Libor by MPs". The Guardian. Retrieved 11 January 2015. Andrew Tyrie, the conservative MP who chairs the commission, accused them of "gross negligence" and "being out their depth". "The level of ignorance of the board of UBS is staggering to the point of incredulity," Tyrie said.
  13. "House of Commons - Parliamentary Commission on Banking Standards - No - Minutes of Evidence: HL Paper 27-III/HC 175-III". www.publications.parliament.uk. Retrieved 28 February 2017.
  14. Moore, James (10 January 2013). "UBS admits Libor fixing had been going on for years". The Independent. Retrieved 11 January 2015.
  15. Logutenkova, Elena (10 January 2013). "Former UBS Investment Bank Head Says He Was Negligent on Libor". Bloomberg L.P. Retrieved 11 January 2015. “I’m deeply sorry that we didn’t spot this,” said Jenkins, CEO of the investment bank until October 2007. “It’s clearly a failing in our systems and controls and in our culture that it wasn’t highlighted through whistle-blowing or other checks and balances in the system.”
  16. Commons, The Committee Office, House of. "House of Commons - Banking Standards: Letter from Huw Jenkins". www.publications.parliament.uk. Retrieved 28 February 2017.
  17. "André Esteves é processado em Hong Kong por ex-Funcionário" (in Portuguese). Brasil Econômico. 15 May 2014. Archived from the original on 22 January 2015. Retrieved 12 December 2014. André Esteves, o bilionário fundador do BTG Pactual do Brasil, foi processado por um ex-funcionário em Hong Kong, que alega que lhe foram prometidas uma parceria e ações por conseguir investidores antes da venda inicial de ações do banco. Zeljko Ivic alegou que o Banco BTG Pactual SA, o presidente e CEO Esteves e Huw Jenkins, um sócio-gerente, fizeram deturpações fraudulentas para que ele assinasse acordos com o banco de investimentos, conforme uma ação judicial apresentada perante o Supremo Tribunal de Hong Kong.
  18. Wong, Douglas (15 May 2014). "BTG Billionaire Esteves Sued in Hong Kong by Ex-Employee - Bloomberg". Bloomberg L.P. Retrieved 10 January 2015. Andre Esteves, the billionaire founder of Brazil’s BTG Pactual, was sued by a former employee in Hong Kong who claims he was promised a partnership and stock for securing investors before the bank’s initial share sale. Zeljko Ivic alleged that Banco BTG Pactual SA, Chairman and Chief Executive Officer Esteves and Huw Jenkins, a managing partner, made fraudulent misrepresentations to get him to sign agreements with the investment bank, according to a lawsuit filed with the Hong Kong High Court. BTG Pactual raised as much as 3.66 billion reais ($1.66 billion) in its 2012 initial public offering. The sale followed a 2010 agreement to sell a stake to a group including China Investment Corp., GIC Pte. and the Rothschild and Agnelli families. Esteves, 45, is worth $4.2 billion according to the Bloomberg Billionaires Index, mostly due to his 22 percent stake in BTG Pactual. Jenkins and Hong Kong-based BTG Pactual Asia Ltd., which has also been sued, will vigorously defend the claims, “which they believe to be baseless and without merit,” according to their lawyer Randall Arthur. BTG Pactual doesn’t comment on matters under litigation, the Sao Paulo-based bank said in an e-mail response to queries. Shares of the company fell 0.7 percent to 32.22 reais at 10:41 a.m. in Sao Paulo. Ivic is seeking more than $20 million as damages for the value of the shares and partnership promised, as well as unpaid bonuses, his lawyer Robert Tibbo said.
  19. "20-Millionen-Klage gegen André Esteves und Huw Jenkins" (in German). Fine News. 15 May 2014. Retrieved 12 December 2014. Der Anwalt von Ivic sagte hingegen, die beiden hätten Ivic etwas vorgespielt. Sein Klient habe eine Schlüsselrolle beim Pactual-Börsengang gespielt.
  20. Samor, Geraldo (15 May 2014). "Zeljko Ivic vs. BTG" (in Portuguese). Veja. Retrieved 10 January 2015. Zeljko Ivic, o reclamante, alega que Esteves e o BTG lhe prometeram sociedade no banco para recompensar seu trabalho, mas não lhe teriam pago. Que trabalho? Ivic alega que foi pessoa-chave na captação de recursos que o BTG fez junto a nove entidades, incluindo os fundos soberanos China Investment Corporation e GIC e as famílias uber-líquidas Rothschild e Agnelli.
  21. Wong, Douglas (15 May 2014). "Esteves, do BTG Pactual, é processado por ex-funcionário" (in Portuguese). Exame. Retrieved 12 December 2014. Ivic está buscando mais de US$ 20 milhões de indenização pelo valor das ações e da parceria prometidas, bem como bônus não pagos, disse seu advogado, Robert Tibbo.
  22. Rizério, Laura (15 May 2014). "Ex-funcionário do BTG de Hong Kong processa André Esteves e pede reparação de US$ 20 mi" (in Portuguese). InfoMoney. Archived from the original on 22 January 2015. Retrieved 12 December 2014. De acordo com o advogado Robert Tibbo, Ivic quer mais de US$ 20 milhões em danos morais, tendo como base o valor das ações e a parceria prometida.
  23. Garvey, Paul (21 May 2014). "Edward Snowden lawyer helps accused insider trader Steven Xiao exploit boats row". The Australian. Retrieved 10 January 2015. In addition to representing Mr Snowden, Mr Tibbo is part of a law suit against billionaire Brazilian Andre Esteves. Mr Tibbo is acting for Zeljko Ivic, who is suing Mr Esteves and his company BTG Pactual for more than $US20 million in damages.
  24. Wong, Douglas (15 May 2014). "BTG Billionaire Esteves Sued in Hong Kong by Ex-Employee". Bloomberg L.P. Retrieved 22 January 2015. Jenkins, based in London, was served on a visit to Hong Kong, the court heard.
  25. "BTG Billionaire Esteves Sued in Hong Kong by Ex-Employee". Bloomberg.com. 15 May 2014. Retrieved 28 February 2017.
  26. Rutishauser, Arthur. "Die neuen Herren der BSI und ihre Vergangenheit" (in German). Sonntagszeitung. Archived from the original on 22 January 2015. Retrieved 10 January 2015. Der grösste Insiderfall – allerdings kein strafbarer, sondern ein cleverer – ist, wie Esteves zu seiner Bank kam, an der er 27 Prozent be sitzt und die er beherrscht. Er verkaufte die Bank 2006 der UBS für 3,1 Milliarden Franken. Zwei Jahre später kaufte er sie für 2,5 Milliarden zurück und brachte sie 2012 für 14 Milliar den Dollar an die Börse. Verantwortlich für den Kauf der Pactual war 2006 der damaligen UBS-Investmentbanking chef Hew Jenkins. Jenkins wur de da mals kurzzeitig zum Chef von Esteves. Es war unter seiner Ägide, als die UBS einen grossen Teil der Schrott-Hypotheken kaufte, die bei der UBS zu den 60 Milliarden Franken Abschreibungen und letztlich zum Eingreifen des Staates führten.
  27. "UPDATE 5-UBS to sell Brazil unit Pactual for $2.5 billion". Reuters. 20 April 2017. Retrieved 28 February 2017.
  28. Jenkins, Patrick. "Ex-UBS man's key role in Brazil bank". Financial Times. Retrieved 17 January 2015. Like most of those who were ejected from their jobs during the financial crisis, he swiftly disappeared from view.
  29. Bray, Chad; Dan Horch (14 July 2014). "Generali Sells Swiss Private Bank to BTG Pactual for $1.7 Billion". The New York Times. Retrieved 21 July 2015. The Italian insurer Generali Group said on Monday that it had agreed to sell BSI, a Swiss private lender, to the banking unit of BTG Pactual Group of Brazil for about $1.7 billion.
  30. Shotter, James (26 March 2014). "Former UBS banker Branson to head Finma". Financial Times. Retrieved 21 July 2015. Before working for Finma, Mr Branson held a number of senior positions at UBS, including working as chief financial officer of its wealth management and Swiss bank business. He was also in charge of UBS’s Japanese securities unit between 2006 and 2008, a period during which employees at the division were involved in attempts to manipulate Libor. As a result, he faced calls to step down in 2012 after UBS reached a SFr1.4bn settlement with a number of regulators, including Finma, over allegations that it had manipulated interbank rates on an “epic” scale.
  31. "UBS announces senior management appointments". UBS. 15 September 2005. Retrieved 21 July 2015. Mark Branson, currently UBS's Chief Communication Officer, will become CEO of UBS Securities Japan Ltd, succeeding Simon Bunce, recently appointed Global Head of Fixed Income for UBS's Investment Bank. In his new role, reporting to Huw Jenkins, CEO, Investment Bank and Rory Tapner, Chairman and CEO, Asia Pacific, Mark Branson will oversee the development of UBS's Investment Bank in Japan and coordinate UBS Group activities in one of the world's largest and most important financial services markets.
  32. Dubas, Sebastien. "Le futur patron de BSI et son passé interpellent". Le Temps SA. Retrieved 21 July 2015. Le repreneur, ou le sauveur, se nommait BTG Pactual, un groupe financier brésilien. Les 2000 employés de BSI pouvaient regarder de l’avant, Generali tourner la page, BTG Pactual se féliciter d’avoir payé un montant jugé dérisoire par nombre d’observateurs – 1,5 milliard de francs pour 89 milliards sous gestion – et la Suisse se réjouir d’attirer encore des banques étrangères. Presque un an plus tard, le rachat doit toujours être validé par la Finma. Si le délai peut sembler long, c’est que le feu vert de l’autorité de surveillance des marchés financiers est lié, en partie, au dossier fiscal américain. Or, BSI a conclu un accord à 211 millions de dollars avec la justice américaine (DoJ) fin mars. Ce qui devrait lui permettre, espère-t-elle dans son rapport annuel publié dans la foulée, d’entériner la transaction rapidement. «La clôture du dossier américain était l’une des préconditions au rachat de BTG», souligne ainsi une source proche du dossier.
  33. "Senior Marketing Changes at UBS" (PDF). Financial News. 2007. Retrieved 21 July 2015.
  34. Scott, Mark. "BTG Pactual Chief Fined Over Insider Trading". DealBook. Retrieved 28 February 2017.
  35. "EFG agrees to buy BSI from Brazil's BTG Pactual for $1.3 billion". Reuters. 22 February 2017. Retrieved 28 February 2017.
  36. FINMA, Eidgenössische Finanzmarktaufsicht. "FINMA - BSI in serious breach of money laundering regulations". www.finma.ch. Retrieved 28 February 2017.
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