Barclays is to announce the creation of a 'bad bank' next week with the aim to transforming its struggling investment banking arm, according to reports.
The bank is set to announce the segregation of its shrinking fixed income operations and its loss-making European branch in its strategic update next week, the FT reports. The unit will be headed by Eric Bommensath, co-head of Barclays' investment bank. The creation of the new non-core unit, which follows similar moves from the likes of RBS, may also involve parts of the bank's macro product suite, such as trading of interest-rate linked products, currencies and commodities, which saw a 23% drop in revenues last year. The planned move follows the departure of Skip McGee, former he...
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