Barclays' (BCS) straight-talking new CFO Tushar Morzaria - in recent private meetings with analysts and investors - is surprising attendees by admitting the bank doesn't yet have a plan for what to do with its investment banking unit, reports the WSJ.
Six-months into his new job, Morzaria - outside of his candor - has earned a reputation as a zealous cost-cutter, "happy to say no" to executives' requests, but it's figuring out what to do with the investment bank that is occupying most if his attention. He has "got to get out a pretty big rifle because the business model was built for an earlier age," says an analyst. "The challenge and question boils down to, do we need this big huge battleship of an investment bank or should we break it up."
The pressure to do something continues to mount on CEO Antony Jenkins and Morzaria is occasionally mentioned as a future chief at Barclays. Jenkins says he intends to remain CEO "for many years yet to come."