Arab Today, arab today barclays bank swings axe as jobs cull hits 19000
Last Updated : GMT 06:57:59
Arab Today, arab today
Arab Today, arab today

Barclays bank swings axe as jobs cull hits 19,000

Arab Today, arab today

Arab Today, arab today Barclays bank swings axe as jobs cull hits 19,000

London - AFP

Scandal-hit Barclays will shrink its investment bank in a radicalrestructuring that will axe 19,000 jobs across the entire group over the next twoyears, it said Thursday.The British lender will this year cut 14,000 positions, or one-tenth of its globalworkforce, more than an initial plan to remove up to 12,000 jobs in 2014.Some 7,000 investment bank staff will lose their jobs by 2016 -- more than a quarterof employees at the division, whose huge bonuses and vast salaries have fuelledpublic and shareholder anger.Barclays said in a statement it will also create a "bad" bank for non-core assets witha total value of £115 billion ($195 billion, 140 billion euros) that would be sold orsimply allowed to run down.As part of the overhaul, the company will incur £800 million of extra costs, exit its European retail banking business and focus on its Africa-wide and credit cardbusinesses.Chief executive Antony Jenkins has been on a mission to reduce the influence ofBarclays' investment bank since replacing Bob Diamond -- the much-malignedformer chief executive who was forced to resign after the 2012 Libor rate-fixingscandal.- 'A bold simplification' -"This is a bold simplification of Barclays," said Jenkins, who was formerly thegroup's retail head."We will be a focused international bank, operating only in areas where wehavecapability,scaleandcompetitive advantage.Barclays employs about 139,000 staff worldwide, including around 26,000 in itsinvestment bank. It will also create Barclays Non-Core -- a unit housing "assets which do not fit thestrategic objectives" of the group that it will run down over time, the statement said.The majority of these so-called risk-weighted assets (RWAs), about £90-billion worth,are currently under the control of the investment bank unit.Barclays will rid itself also of £16 billion worth of Europe retail RWAs.Housing much of Barclay's investment bank and continental European retail operations in a "bad bank" mirrors moves made by UBS in 2012 when it decided toexit the riskiest fixed-income trading areas.It will also help Barclays avoid the multibillion-pound writedowns that haveaccompanied the establishment of other "bad banks", including by Royal Bank ofScotland and UniCredit.Barclays said it expects to incur costs on top of the £2.7-billion restructuringamount it had announced 15 months ago- Share price jumps higher The strategy update sent Barclays' share price soaring 7.87 percent to finish at262.45 pence on London's rising FTSE 100 index on Thursday."While Barclays is likely to deliver some poor earnings numbers as it transitions toits new structure, the final form should be a more stable and focused bank,something investors may be prepared to pay for," said analyst Jonathan Jackson atbrokerage Killik & Co.The lender earlier this week said pre-tax profits almost halved at its investmentbanking arm during the first quarter of the year.They dived 49 percent to £668 million in the three months to the end of Marchcompared with a year earlier, hit by sliding revenues.Barclays is still seeking to fix a reputation badly damaged by its role in the Liborscandal, while it has also been probed along with other banks over possiblemanipulation of foreign exchange trade.Despite poor earnings, Barclays increased the money available for staff bonuses byalmost 10 percent earlier this year, angering some politicians and union bosses. The Libor scandal erupted two years ago when Barclays was fined £290 million byBritish and US regulators for attempted manipulation of Libor and Euriborinterbank rates between 2005 and 2009. Euribor is the eurozone equivalent of Libor."My goal is unchanged: to create a Barclays that does business in the right way, withthe right values, and delivers the returns that our shareholders deserve," Jenkinssaid.Barclays was last year was also forced into a huge £5.8-billion shares sale, or rightsissue, to meet regulatory demands to strengthen its capital buffers.Diamond, who headed the investment bank before becoming chief executive, wasone of the world's highest paid bankers and helped to turn Barclays into a leadingplayer in investment banking.

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today barclays bank swings axe as jobs cull hits 19000 Arab Today, arab today barclays bank swings axe as jobs cull hits 19000

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today barclays bank swings axe as jobs cull hits 19000 Arab Today, arab today barclays bank swings axe as jobs cull hits 19000

 



Arab Today, arab today
Arab Today, arab today Designer Aql Faqih aspires to innovation

GMT 18:41 2017 Friday ,20 October

Designer Aql Faqih aspires to innovation
Arab Today, arab today What's the reason and what you can do

GMT 05:44 2017 Sunday ,22 October

What's the reason and what you can do
Arab Today, arab today Etiquette expert underlines importance of gifts

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts
Arab Today, arab today Prayers turn to nightmare

GMT 06:14 2017 Sunday ,22 October

Prayers turn to nightmare
Arab Today, arab today Hiring not part of Alibaba pledge

GMT 11:26 2017 Wednesday ,18 October

Hiring not part of Alibaba pledge
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today World's deepest lake in peril

GMT 15:54 2017 Friday ,20 October

World's deepest lake in peril
Arab Today, arab today Ex-French minister Dati wants tough action

GMT 10:54 2017 Thursday ,19 October

Ex-French minister Dati wants tough action
Arab Today, arab today Delhi braces for pollution 'airpocalypse'

GMT 16:07 2017 Friday ,20 October

Delhi braces for pollution 'airpocalypse'
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today EU raids automaker BMW

GMT 11:06 2017 Saturday ,21 October

EU raids automaker BMW
Arab Today, arab today Sweden to get biggest car factory

GMT 14:10 2017 Friday ,20 October

Sweden to get biggest car factory
Arab Today, arab today Actress Mona Zaki praises husband’s role

GMT 08:15 2017 Thursday ,19 October

Actress Mona Zaki praises husband’s role
Arab Today, arab today Massacre fears spark race

GMT 19:09 2017 Thursday ,19 October

Massacre fears spark race

GMT 08:57 2017 Wednesday ,18 October

Actress Shery Adel happy for Egypt’s qualification

GMT 18:15 2017 Monday ,16 October

British actress becomes fifth woman

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam

GMT 16:00 2017 Wednesday ,18 October

Climate-disrupting volcanoes helped topple

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 10:18 2017 Saturday ,21 October

How to do open-heart surgery

GMT 13:44 2017 Friday ,20 October

Barcelona through George Orwell’s eyes

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 20:46 2017 Thursday ,19 October

Qualcomm files lawsuits in China to ban iPhones

GMT 16:53 2017 Saturday ,02 September

Mai importance of gifts during Eid Al-Adha
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday