April 29 (Reuters) - Barclays Plc will say nextweek that it is creating a "bad bank", hoping to transform itsstruggling investment banking operations, the Financial Timesreported.
The bank will say, as part of a strategic update, that itplans to exit parts of its shrinking fixed income business andits lossmaking European branch network, the paper said on itswebsite, citing sources. (http://link.reuters.com/xas88v)
It added that the internal bad bank will be run by EricBommensath, the co-head of its investment bank.
Barclays declined to comment.
The news comes hours after one of the British bank's topdealmakers quit as head of its Americas business, in anotherblow to Barclay's investment banking arm. The former LehmanBrothers banker's exit is likely to raise concern that some ofhis former Lehman colleagues will join him.
His departure coincides with pressure on Barclays ChiefExecutive Antony Jenkins to cut staff pay after shareholderslast week rebelled against a decision to increase bonuses. (Reporting by Richa Naidu in Bangalore; Editing by RobinPomeroy)
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