Feb. 12, 2013
BY KATIE BRENNAN
Barclays Bank will axe 3,700 jobs this year in hopes of reducing annual costs by 1.7 billion pounds, or about $2.6 billion. Sky News reports new CEO Anthony Jenkins has more than just the balance sheet in mind.
“Anthony Jenkins wants to change the culture of the bank. Away from what he calls the barrow-boy investment banking greed scenario to a bank of trust that everybody goes to.”
That’s not an easy feat. The restructuring comes after a series of scandals under former CEO Bob Diamond. A member of the UK Parliament told Bloomberg he doesn’t think Jenkins’ new plan will do enough.
“I think Barclay’s have got a lot to prove with these things. I don’t think today does the job. And I think they’ve got a lot more to do to achieve the culture change that they say that they want to see.”
And Oliver Ralph of the Financial Times told CNBC Europe some thought Jenkins would make even more radical changes to the bank.
“There was I suppose a question mark about whether he would try to split off the investment bank from the retail bank. There was some political pressure to do that //WHITE FLASH// as its happened they’ve not done that they have made some changes but really kept the structure intact.”
Some parts more intact than others, though. The investment banking division will shrink 8 percent this year. The restructuring plan comes as Barclays posted a $1.3 million loss in the final quarter of last year — a huge fall compared to the more than a half a billion dollars in profit it made in 2011’s fourth quarter.
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