Wealth Manager - the site for professional investment managers

Register to get unlimited access to Citywire’s fund manager database. Registration is free and only takes a minute.

Barclays to create bad bank

Barclays plans to create a bad bank as part of an overhaul of its investment banking operations, according to the Financial Times.

Details are tipped to be revealed in its update to investors next week. The new unit is expected to hold parts of its macro products unit, including interest rate-linked products, currencies and commodities, which saw revenue slump by 23% in 2013.

The news comes after Barclays US chief, Hugh ‘Skip’ McGee - the most senior former Lehmans Brother banker at the lender - quit the bank yesterday ahead of radical restructure of its US business. He joined the bank in 2008 following the collapse and subsequent takeover of Lehmans.

In a statement Barclays chief Antony Jenkins heralded McGee's ‘significant contribution’.  

‘He has been the longest-serving head of investment banking on Wall Street, and our most senior client-facing executive, responsible for driving some of the industry’s highest profile transactions,’ Jenkins said.

Barclays has come under pressure recently on its bonus policy, with Standard Life Investments (SLI), the bank’s sixth largest shareholder, launching a public attack last week.

‘We are unconvinced that the amount of the 2013 bonus pool was in the best interests of shareholders, particularly when we consider how the bank's profits are divided amongst employees, shareholders and ongoing investment in the business,’ Alison Kennedy, SLI governance and stewardship director, said ahead of the company’s AGM.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Brewin's Gutteridge: what's behind the second oil crash?

Brewin's Gutteridge: what's behind the second oil crash?

This week Brewin Dolphin's research head talks to Will Riley, co-manager of the Guinness Global Energy fund, about what next for oil.  

Play AA-rated Bullas: what drove my UK small cap outperformance

AA-rated Bullas: what drove my UK small cap outperformance

AA-rated Richard Bullas has quietly been making a name for himself at the helm of the Franklin UK Smaller Companies fund.

Play Sector spotlight: how Harwood's Philbin is playing emerging markets

Sector spotlight: how Harwood's Philbin is playing emerging markets

Emerging markets have been a rollercoaster for investors, but amid the doom there have been have been bright spots, such as India. 

Your Business: Cover Star Club

Profile: CHI's bond supremo on liquidity and bond risk management

Profile: CHI's bond supremo on liquidity and bond risk management

'Some people have been extremely complacent about rate rise risk. Myself, I wish they would just get on with it.'

Wealth Manager on Twitter