Barclays Said to Name Bommensath to Oversee ‘Bad Bank’ (Bloomberg)
Barclays is planning to move its commodities division into a so-called bad bank of unwanted assets and units to be overseen by Eric Bommensath, according to a person familiar with the plan. Tom King, 53, co-head of the corporate and investment bank with Bommensath, will become its sole leader, the person said yesterday, asking not to be identified because the change hasn’t been made public. Bommensath will oversee businesses that the London-based firm previously designated as part of its “exit quadrant,” according to the person.
McGee Exiting Barclays Shows Lehman Legacy Fading Away (Bloomberg, related)
When Barclays Plc announced yesterday that McGee is stepping down from that role at the end of the month, it meant the London-based firm will lose a banker seen by U.S. colleagues as their advocate for risk, pay and aggressiveness. His departure is another step away from a pre-crisis Lehman culture whose competitiveness was written into the firm’s code of ethics. Almost six years after Barclays bought parts of the company, which filed the biggest bankruptcy in history, and following its own scandals from interest-rate rigging to selling insurance customers didn’t need, the lender is cutting jobs, rebuilding relationships with regulators and facing shareholder pressure to curb bonuses. “Barclays has to have its own identity and has to do its own thing, and I think it’s evolving to that now,” said American International Group Inc. General Counsel Tom Russo, a former Lehman vice chairman. “I think it’s becoming extraordinarily cost-conscious. It’s shrinking a bit.” McGee, 54, said in an e-mailed statement that he’s leaving because the job has changed. “My focus has always been on clients, but given the need for Barclays leadership to focus on regulatory issues for the foreseeable future, I have decided that it is time for me to move on to new challenges,” he said.
Third Point Asks Judge To Delay Sotheby’s Annual Meeting (Law360)
Third Point LLC asked a Delaware Chancery judge Tuesday to postpone Sotheby’s upcoming shareholder meeting, saying the auction house is improperly using a poison pill to thwart activist investor Daniel Loeb’s proxy fight for three board seats.
Twitter’s Stock Sinks Despite Growth in Revenue, Users (WSJ)
While Twitter has proven to be a powerful communications tool for celebrities, activists, marketers and journalists, it hasn’t caught on with mainstream users. Facebook, meanwhile, has become a required place to share photos and life’s daily happenings. Twitter reported Tuesday it added 14 million monthly active users in the first quarter, up 5.8% to 255 million from the previous three months. That growth was better than in the fourth quarter but failed to impress some analysts. Today one in five Internet users in the U.S. log into to Twitter once a month, and its global user base is about one-fifth the size of Facebook’s.
‘Dark Wallet’ for Managing Bitcoin Arrives This Week (Digits)
Last year, the Journal told readers about Cody Wilson’s efforts to take the virtual currency off the grid through a project called Dark Wallet, the 26-year-old’s latest effort to use technology to sidestep the government. Mr. Wilson is most famous for creating the first working gun made by a 3-D printer. After months of programming, Wilson and his partner, British anarchist Amir Taaki, also 26, are releasing an early version of the software for free download. It will work as an add-on for Google’s Chrome browser….Among other things, Dark Wallet is designed to encrypt bitcoins as they’re spent, making it difficult to see who is buying what. Think of it as throwing a ball into a spinning lottery tumbler and picking out a different ball. If more people use Dark Wallet, the theory goes, more people put balls in the lottery tumbler and make it harder to determine which belongs to whom.
Cronut Chef Creates the Waffogato (Time)
Dominique Ansel, creator of the infamous cronut, is at it again. And this time, he’s taking on the waffle. Well, sort of. The New York-based chef has created a waffle made out of ice cream and topped with a maple syrup espresso, which will make its debut at a hunger relief fundraiser in New York City Monday night. Ansel’s waffogato, a breakfast-themed take on the Italian dessert of ice cream topped with espresso, will be available in his Soho bakery starting May 9. The vanilla ice cream “waffle” is laced with Belgium waffle bits and set in a cup where warm, maple syrup espresso is poured on top. “It’s a little like a milkshake at the end,” Ansel told the Wall Street Journal. If history tells us anything, it’ll likely spark flocks of New Yorkers and tourists to stand in line for hours for the latest Ansel concoction, much like the waffogato’s predecessor the cronut did. Not even a mouse infestation could dim the hype over the part-donut, part-croissant pastry. The waffogato could even spawn another underground pastry economy, though that could be tricky logistically—the chef told the Wall Street Journal that his latest creation is best eaten right away. Read more »