Barclays to shake up investment bank: Thousands of jobs cuts expected

Fiscal Times ^ | 03/13/2014 | By Martin Arnold, Patrick Jenkins and David Oakley

[SeekAndFind]

Barclays is preparing a radical overhaul of its troubled investment bank in a move which is expected to result in thousands of job cuts, adding to pressure on the division’s two heads.

The shake-up comes amid growing investor disquiet about the bank’s decision to increase bonus payments by 10 per cent to a total of £2.4bn last year in spite of a one-third fall in its pre-tax profits.

Shareholders are also unhappy about rising costs and falling profits at the investment bank, which is jointly run by Tom King in the US and Eric Bommensath in Europe.

The new strategy for the investment bank is expected to be unveiled before the summer. Two people familiar with the situation said the bank was also considering replacing Mr King and Mr Bommensath, though this may not happen until after the new strategy is presented. Barclays denied that a search was “in train for any change to leadership in the investment bank”.

Antony Jenkins, chief executive, has attracted widespread criticism for the performance of the investment bank and for arguing that without the higher bonuses Barclays would face a “death spiral” of departing bankers.

[Natufian]

Jobless investment bankers? I’ll drink to that.

[Wolfie]

The shake-up comes amid growing investor disquiet about the bank’s decision to increase bonus payments by 10 per cent to a total of £2.4bn last year in spite of a one-third fall in its pre-tax profits.

Classic.

[Wolfie]

Antony Jenkins, chief executive, has attracted widespread criticism for the performance of the investment bank and for arguing that without the higher bonuses Barclays would face a “death spiral” of departing bankers.

Yep, wouldn't want to lose the brain trust that gave you a one-third drop in profits.

[Parley Baer]

Lots of banker suicides lately.