Scotiabank taps Morgan Stanley executive to lead its global banking and markets division

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The Bank of Nova Scotia BNS-T has tapped U.S. banking veteran Travis Machen to oversee its global banking and markets division, the latest in a series of external hires to the most senior ranks at the lender.

The move is the latest leadership changeover in the past year in which chief executive officer Scott Thomson has acquired talent from other financial institutions while promoting more junior executives through the ranks internally. Mr. Machen, who is currently an executive at New York-based bank Morgan Stanley, will lead a key business in Scotiabank’s strategic turnaround plan as it seeks to grow across Canada, the United States and Mexico.

“Travis is a forward-thinking leader with the vision and experience to lead our global banking and markets business,” Mr. Thomson said in a statement. “Throughout his career in corporate, investment and commercial banking, Travis has earned a reputation for being a client-focused relationship banker.”

Many of Canada’s largest banks are focused on building their businesses in the fast-growing U.S. market. Last year, Toronto-Dominion Bank TD-T purchased New York-based investment bank Cowen Inc. Bank of Montreal BMO-T scooped up California-based Bank of the West and tapped Wall Street veteran Alan Tannenbaum to lead its investment banking division, BMO Capital Markets.

Mr. Machen is tasked with driving Scotiabank’s strategic overhaul in its capital markets business, which focuses on bolstering its presence in the United States to attract clients with business ties abroad, particularly in Mexico and Canada. At its investor day in December, the bank said it is targeting more than 7-per-cent earnings growth in the segment over the next five years, with the U.S. and Mexico expected to be the largest contributors.

In his most recent role in his 25-year career in banking, Mr. Machen served as the managing director and head of banks, diversified and financial infrastructure at Morgan Stanley. Previously, he was managing director and head of the financial institutions group in corporate and commercial banking at JPMorgan Chase, where he provided advisory services to global clients.

He is also a member of the financial sector advisory council for the Federal Reserve Bank of Dallas.

Mr. Machen takes on his new role on May 6, and he will be based in both New York and Toronto.

“I have been impressed by the scale and capabilities of Scotiabank’s global wholesale banking business and see the opportunity to capitalize on our unique positioning throughout the North American corridor and across our footprint,” Mr. Machen said in a statement.

In February, then-head of global banking and markets Jake Lawrence left Scotiabank after more than two decades to join Power Corp. of Canada as chief financial officer. He had been a contender for the CEO job at Scotiabank in 2022.

Other high-profile executives have also departed Scotiabank over the past year, including head of Canadian banking Dan Rees and head of international banking Ignacio (Nacho) Deschamps – both of whom had been CEO candidates.

To fill those roles, Scotiabank hired former head of retail banking at Amsterdam-based ING Group Aris Bogdaneris and Francisco Aristeguieta, who was the executive vice-president and CEO of Boston-based bank State Street Corp.’s institutional services unit.

Scotiabank also hired Jacqui Allard, formerly Royal Bank of Canada’s executive vice-president of personal financing products. She joined Scotiabank in September as deputy head of global wealth management, and later succeeded Glen Gowland as group head of global wealth management on Jan. 1.

When Mr. Lawrence left, Scotiabank promoted Michael Kruse as interim global head of corporate and investment banking, global banking and markets, and Paul Scurfield also got an expanded role as global head of capital markets.

Once Mr. Machen starts, Mr. Scurfield will report directly to him. For now, Mr. Kruse will continue in his current role and will work with Mr. Machen to assess the leadership structure for the business. Once this is completed, Mr. Kruse will take on a new role as global head of multinational business, reporting to both Mr. Machen and head of international banking Mr. Aristeguieta, who oversees Mexico and the bank’s other businesses across Latin America.