Former UK chancellor Sajid Javid returns to JP Morgan
Sajid Javid has taken up a role at JP Morgan six months after quitting as UK chancellor.
Javid has joined the US lender’s European advisory council. This will offer the group counsel on its operations in the region after Brexit, according to a memo to staff seen by the Financial Times.
Javid joined JP Morgan in New York after leaving university, later moving to Deutsche Bank before becoming a Conservative MP in 2010.
His role at the bank will be “strictly ring-fenced” from his political position. It has been signed off by the UK government’s Advisory Committee on Business Appointments.
MPs are allowed to take on second jobs. While some have argued that representing constituents should be a full time job, others say working in “the real world” keeps members of parliament grounded in reality.
However, the Committee warns that the former chancellor’s “privileged access to information” means accepting a job with JP Morgan carries “potential risks”.
“Privileged information” refers to official information a minister has gained as a result of their job, but which is not available to the public.
This privileged insight could give JP Morgan an unfair advantage over their competitors.
Specifically, the Committee points to his knowledge of “potentially at risk firms” and the government’s likely post-Brexit policies.
To reduce the risk of giving JP Morgan an “unfair advantage” the Committee issued Javid with advice.
These mainly focus on the duration of time he will take before personally lobbying the UK government on behalf of JP Morgan, or using his contacts to influence policy for the bank.
Among other members of the council are Esko Aho, the former Finnish prime minister, and Vittorio Grilli, the former Italian finance minister, who has taken over as chair.
The council has senior business and political leaders from across Europe, the Middle East and Africa. It meets periodically throughout the year.
“We are delighted to welcome Sajid back to JP Morgan as a senior adviser, and we look forward to drawing upon his in-depth understanding of the business and economic environment to help shape our client strategy across Europe,” the bank notes in a statement to the FT.
JP Morgan declined to provide details on how much he would be paid.
In 2008 it hired Tony Blair as a senior global adviser. It paid the former UK prime minister £2 million a year.
Javid joined JP Morgan in its currencies and emerging markets businesses in New York before switching to Deutsche Bank.
He quit as chancellor in February. This followed his power struggle with prime minister, Boris Johnson and his adviser, Dominic Cummings. The disagreement was over who should control the country’s economy.