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.