Citi puts Fraser in pole position to lead bank, Aramco delays mega IPO

Citi puts Fraser in pole position to lead bank, Aramco delays mega IPO, and JPMorgan embraces second chances: This Week in Finance

Welcome to This Week in Finance, your weekly roundup of the conversations trending among financial professionals on LinkedIn. Click Subscribe above to be notified of each edition. This week:

Big banks may get first female CEO

Citigroup named Jane Fraser as its new president as well as CEO of global consumer banking. The move puts Fraser in line to be the next CEO of the country's third-largest bank and the first-ever woman chief of a major bank. While women make up roughly 47% of the workforce in the U.S., only 33 of Fortune 500 companies have women in the top job. 💲 Here's what people are saying.

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SoftBank reveals $9.5B WeWork deal

Japanese conglomerate SoftBank will take an 80% stake in WeWork as part of its $9.5 billion rescue deal. Former CEO Adam Neumann, who leaves with $1.7 billion and almost no role at the office-leasing startup he co-founded, will be replaced by SoftBank executive and newly appointed executive chairman Marcelo Claure. The agreement, which comes after a botched IPO last month, values the company at about $8 billion, down from $47 billion earlier this year. 💲 Here's what people are saying.

Aramco IPO delayed again

Saudi Arabia has once again delayed the initial public offering of its oil giant, according to Bloomberg. Aramco is struggling to reach the $2 trillion valuation desired by the kingdom’s crown prince, sources said. The delay will give bankers time to incorporate the results of the third quarter into the valuation. Aramco was expected to list its shares on Saudi’s stock market this week. 💲 Here's what people are saying.

Zuckerberg: Libra may not work out

Facebook CEO Mark Zuckerberg admitted there is a regulatory "scenario" where the company may need to reconsider its involvement in Libra. In a hearing arranged to address Facebook's proposed digital currency, House Financial Services Committee Chairwoman Rep. Maxine Waters said it would be "beneficial" if Facebook addressed "its many existing deficiencies and failures before proceeding any further on the Libra project." Zuckerberg admitted "it's a risky project" and he doesn't know "if Libra is going to work." 💲 Here's what people are saying.

JPMorgan hires out of the box

JPMorgan Chase hired more than 2,000 people with criminal records last year, or 10% of its total hires, and says it plans to continue doing so. Despite the bank's “banning the box” stance — whereby companies no longer ask about criminal history — it was made aware of the employees' history through background checks, it said. Those workers were mostly offered entry-level roles such as account servicing. In the U.S., the unemployment rate for the formerly incarcerated stands at 27%, while wider unemployment is at 3.5%. 💲 Here's what people are saying.

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Asia's banks are at a crossroads

Banks in the Asia-Pacific region must make "radical" changes to survive the coming downturn, a report by McKinsey suggests. The consultancy firm believes a majority of the world's lenders are already weak. Asian banks are at a higher risk: Their margins slumped six times more than those of global peers in the past five years, amid the disruption caused by the fintech revolution. Globally, about 60,000 banking jobs were axed this year, including retrenchments at MUFG, HSBC, and Deutsche Bank. 💲 Here's what people are saying.

Draghi bids farewell to ECB

The European Central Bank has kept interest rates at a record low, as president Mario Draghi waves farewell to the institution. Speaking in Frankfurt at what marked his last monetary policy meeting, the outgoing president said that slowing global growth and Brexit uncertainty pose a risk to growth, warning that the eurozone economy faced “prominent downside risks” and “protracted weakness.” The Italian economist will be succeeded on Nov. 1 by former International Monetary Fund head Christine Lagarde. The central bank will begin a €20 billion-a-month bond-buying program next month. 💲 Here's what people are saying.

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Lagarde: U.S. may lose its leadership

The U.S. risks losing its leadership role in the world, warned Christine Lagarde, the outgoing International Monetary Fund chief and soon-to-be European Central Bank president. In an interview on CBS's “60 Minutes,” Lagarde also said uncertainty and unpredictability around trade is hurting the global economy, leading to less investment, fewer jobs, and reduced growth. Global growth this year is on track for its slowest pace since the financial crisis, the IMF said last week. 💲 Here's what people are saying.