Seeking Alpha

The Street still loves a good chainsaw; Barclays soars

  • Plans to gut its investment bank (7K job cuts), park £400B of assets in a "bad bank", and cut another 12K positions from the rest of the company light a fire under Barclays (BCS +7.8%). The lender's current workforce is 139.6K strong, and the 19K in cuts announced today stands against a plan of just 12K expected earlier this year.
  • Barclays' reshaped investment bank will concentrate on the core markets of the U.S. and the U.K., and the top 1K clients who generated more than 75% of revenues last year. The investment bank will now account for 30% or less of risk-weighted assets, down from 50% now.
  • Talking a different line than JPMorgan's (JPM +0.4%) Jamie Dimon, Barclays boss Antony Jenkins says the evaporation of trading revenue is indeed secular, not cyclical.
  • Previously: Cyclical or secular? JPMorgan warns again on trading business
  • Previously: Barclays plans to axe 19,000 jobs
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Comments (1)
  • al roman
    , contributor
    Comments (9701) | Send Message
     
    Things are changing.
    8 May 2014, 04:20 PM Reply Like
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