Remember when Bank of America said it was working on a little something called “Project New BAC,” and it involved firing a whole bunch of employees? Barclays is apparently working on a coupla “projects” of its own.
Barclays could ax as many as 3,500 investment bank staff and cut its advisory or equities operations in Asia as part of a broader strategic review aimed at fixing the bank’s culture in the wake of the financial crisis. The future shape and size of the investment bank is seen as the most critical part of Chief Executive Antony Jenkins’ review, as it contributes more than half of group profits but conducts the “casino” activities politicians and regulators are cracking down on…Jenkins is not due to unveil his “Project Transform” until February, but Project Mango, as the investment bank revamp has been named by the unit’s boss Rich Ricci, is close to being wrapped up…Project Mango – named after a fruit that in some cultures is seen as a symbol of attainment – involves screening activities first for reputational risk, then assessing culture and leadership, and then deciding whether they deliver decent sustainable returns, he said. “We’ve turned the analysis on its head. We’ve put the reputational risk analysis very front and center,” Ricci told lawmakers on Wednesday as part of an inquiry into banking industry standards. There would be “demonstrable change” from the review, he said.