Barclays is to create a “bad bank” for its non-core assets next week as it attempts to revive its struggling investment banking operations.
The new internal unit, which was revealed by the Financial Times, will include the majority of Barclays’ commodities operation and their loss-making European branch network along with other businesses the company is hoping to wind down or exit.
The plan could result in a loss of 8,000 jobs across the company, and was announced in the wake of the resignation of Skip MaGee, head of Barclays America, and one of the most senior former Lehman Brothers bankers at Barclays.
