Just when you thought the worst was already known about Barclays, a new storm is looming and it threatens to inundate a portion of the British firm’s investment bankers.
The Sunday Times reported yesterday that Barclays wants to cut costs across the group by £1.7bn and to sell off £150bn of loans and toxic securities, thereby cutting the size of the investment bank’s balance sheet by 20%, Barclays is likely to pull out altogether from trading some securities where it doesn’t have a dominant position, says the Sunday Times. All will become clearer tomorrow when Barclays announces its full year results and unveils its new strategy. Senior investment bankers are likely to come out worse: the British bank is already said to be cutting 400 senior people from its investment bank and has reportedly already deemed that its managing directors will have 100% of their bonuses deferred over a three period. This is a repeat of an unpopular policy from last year. Sky News reports that Barclays has also capped cash bonuses for non-MDs at £140k, down from £185k in 2013.
Separately, Financial News has a more cheerful revelation. It says banks are hiring again for their investment banking divisions (IBD) in London. Citigroup, Credit Suisse and Nomura all want to strengthen their investment banking teams, says the Financial News, citing ‘sources.’ Citi reportedly wants to hire a few bankers for its ‘core UK team.; Credit Suisse wants to add ‘selectively’ to its UK team. Nomura has made some ‘recent additions’ to its teams in UK debt capital markets and TMT coverage.
A Barclays financial planning unit which was closed in 2011 seems to have leaked data from 27,000 customers to brokers who used it for investment ‘scams.’ (Bloomberg)
George Soros made $5.5bn last year. (Financial Times)
The UK FCA has banned 5,783 people from working in registered finance roles since 2008. (The Times)
Research by campaign group the Robin Hood Tax campaign found a total of £67.7billion in bonuses had been paid to finance staff since 2008. (Mirror)
The Bank of England seemed to sanction FX fixing, (Bloomberg)
UBS has become the industry whistleblower. (Reuters)
UBS is beating Credit Suisse in the race to see who can shrink fastest. (Quartz)
Successful people combine insecurity, superiority and impulse control. (Financial Times)
“The stock market is a mechanism for humility. If you think you are a star, then you fail. You are only as good as your last game and only the paranoid survive.” (Financial Times)
A top Chinese regulator directly asked Jamie Dimon if JPMorgan would hire a young friend of his. That friend now works for the bank. (DealBook)
Junior investment bankers say the new work-life balance rules are having no impact whatsoever. (Fox)