Right on que18 May 2018 01:12
EXCLUSIVE � Barclays activist urges trading shutdown at investment bank � sources
17 May 2018 17:23
Future of cash, fixed income trading in doubt, investors say
Bramson seen keen to prioritise ECM, DCM and M&A advisory
Some shareholders oppose the plan, citing cost, complexity
Strategy is at odds with CEO's vision to invest in trading
(Adds further details, investor quotes)
By Sinead Cruise, Ben Martin and Lawrence White
LONDON, May 17 (Reuters) � Activist investor Edward Bramson is calling on Barclays to end the bulk of trading activities at its investment bank, in a radical plan to cut costs and boost returns at the British lender, three sources familiar with the matter told Reuters.
Investors briefed by the New York-based financier, who took a surprise 5 percent stake in Barclays in February, said Bramson wanted it to axe all parts of its investment banking operation that did not directly serve corporate clients.
The plan would see Barclays keep its money-spinning M&A advisory business and the equity and debt capital markets teams responsible for leading high-value initial public offerings and bond sales, but cull its cash equities, currency and fixed income trading desks, the sources said.
Spokesmen for Bramson's Sherborne Investors and Barclays, Britain's third biggest bank by market capitalisation, declined to comment.
"The trading businesses lack scale, absorb too much risk capital and deliver too small a return," one of the sources familiar with Bramson's plan said.
"There is a route back to success and respectability for this bank, and this is to focus on the retail bank, Barclaycard and the good bits of the corporate and investment bank (CIB). Management just have to seize it." Bramson, described as a turnaround specialist on his company website, has until now managed to keep the finer details of his plan to revamp Barclays under wraps since his 700-million-pound ($947 million) investment vehicle � Sherborne Investors Guernsey C � made its stake-building public.
Bramson has a strong record of delivering change at his turnaround targets.