LONDON (Alliance News) - Barclays PLC is to create a "bad bank" to transform its investment banking operations, according to the Financial Times Tuesday.
British bank Barclays is expects to announce the creation of an internal bad bank next week, into which it will put all its bad assets.
Barclays is using the bad bank to help transform is ailing investment banking operations, the FT said, which have been hit by the departure of Skip McGee, head of Barclays Americas. McGee's role is being replaced by Joe Gold, currently global head of client capital management.
The internal bad bank will be run by the co-head of its investment bank Eric Bommensath, the newspaper said, citing people familiar with the situation.
The move will see Barclays exit parts of its fixed-income business and its loss-making European branch network, according to the FT, which is expected to include some or all of its retail banking businesses in France, Italy, Spain and Portugal.
The bank is also expected to add the GBP54.4 billion of assets left in businesses already identified as non-core, including leveraged loans and European corporate loans, the newspaper said.
http://www.ft.com/cms/s/0/69c49ade-cf9e-11e3-bec6-00144feabdc0.html#axzz30LRwQ57E
By Rowena Harris-Doughty; rowenaharrisdoughty@alliancenews.com; @rharrisdoughty
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