Antony Jenkins said he will outline his plans for Barclays in the first quarter of next year. “The challenges that confront investment banking as an industry are driven by regulatory change and the economic environment,” the new CEO said by telephone today. “It requires us to think strategically about the direction of investment banking.” The investment bank is led by Rich Ricci, a Diamond appointee. With increased regulation from Europe and the U.K., volatile market conditions for mergers and acquisitions and continuing criticism of bankers’ pay by politicians, Barclays has faced calls from analysts and shareholders to either sell the division or reduce its size. “The Barclays Capital decade and Bob Diamond will be confined to history,” said Simon Maughan, a financial industry strategist at Olivetree Securities in London. “What investors want to see is far more dramatic cost cutting, and the question is will Jenkins be enough of his own man to do it. It’s not Barclays’s style.” [Bloomberg]
BarCap Analyst Identifies Senior Bankers’ Failure To Show Up To Good-Bye Party As Being Representative Of “Fundamental Flaw In Group’s Culture,” Suggests They Shape Up ASAPBy Bess Levin
To: BarCap TMT Group
Sent: Wednesday, June 27, 2012 12:21 PM
At last night’s event, we were disappointed by the poor representation of senior bankers. We truly appreciate Pat, David and Ranjot for showing up and expressing support and gratitude. However, the fact that only three of 21 senior bankers decided to show up speaks to a fundamental flaw in the culture of our group.
Cuts are said to have gone down at the House of Diamond. Read more »
In 2008, commodities trader Todd Edgar made JPMorgan $100 million. Soon after, he and his 12-man team were poached by Bob Diamond at BarCap, after being offered a “$50 million cash and shares package” to jump ship. JPM was pretty pissed about it, and complained to the FSA, to no avail. BarCap, naturally, felt great about the situation, and consider the pounds money well spent. The Brits are less than thrilled with Edgar et al today, after it was announced that the last two years have been fun but they’ll be taking off now. Read more »
Cuts went down this afternoon. Read more »