April 29 Barclays Plc will say next
week that it is creating a "bad bank", hoping to transform its
struggling investment banking operations, the Financial Times
The bank will say, as part of a strategic update, that it
plans to exit parts of its shrinking fixed income business and
its lossmaking European branch network, the paper said on its
website, citing sources. (link.reuters.com/xas88v)
It added that the internal bad bank will be run by Eric
Bommensath, the co-head of its investment bank.
Barclays declined to comment.
The news comes hours after one of the British bank's top
dealmakers quit as head of its Americas business, in another
blow to Barclay's investment banking arm. The former Lehman
Brothers banker's exit is likely to raise concern that some of
his former Lehman colleagues will join him.
His departure coincides with pressure on Barclays Chief
Executive Antony Jenkins to cut staff pay after shareholders
last week rebelled against a decision to increase bonuses.
(Reporting by Richa Naidu in Bangalore; Editing by Robin