(Changes attribution; adds details, background)
By Steve Slater and Richa Naidu
April 29 British bank Barclays Plc will
next week announce the creation of a bad bank portfolio of
assets it deems non-core that it intends to sell or run down as
part of a streamlining of its investment bank, a person familiar
with the matter said on Tuesday.
Last year, Barclays Chief Executive Antony Jenkins announced
a portfolio of assets termed Exit Quadrant, that it aimed to get
rid of; and these assets are likely to go in the non-core
portfolio along with commodities assets following last week's
decision by the bank to exit that business, the Financial Times
The source said the details had not been finalized and asked
not to be named before the plan is announced on May 8.
There are 54 billion pounds ($90.97 billion) of assets in
the Exit Quadrant portfolio.
The Financial Times, which first reported the plan to set up
a so-called bad bank of assets, said it is also likely to house
parts of Barclays' macro products unit, which includes the
trading of interest rate-linked products, currencies and
commodities, and some or all of Barclays' retail banking
businesses in France, Italy, Spain and Portugal.
Barclays declined to comment.
Full details of assets to go in the non-core business will
be released in a strategic update on May 8. The internal bad
bank will be run by Eric Bommensath, the co-head of Barclay's
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 follow him out the door due to
complaints about pay and the future plans for the business.
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.
($1 = 0.5936 British pounds)
(Editing by Robin Pomeroy, Bernard Orr)