What have they been smoking? Trust Dealbreaker’s One and Only Bess Levin: Barclays will
take the axe to its controversial tax structuring unit, as the UK lender seeks
to clean up its image in the wake of a succession of scandals. The business,
which at its peak may have generated as much as three-quarters of profits at
Barclays’ investment banking operation, will be shrunk dramatically as part of
the bank’s Project Transform under new chief executive,
Antony Jenkins. Barclays’ actions comes as global banks from
Goldman Sachs to Deutsche Bank are reviewing their business models in response
to new regulations and government enforcement efforts. “We have to take a fresh
look to see if there are products and services in which…we no longer deem it
appropriate to do business, regardless of financial return,” Rich Ricci, Barclays
investment banking chief, said in an address to investors on Monday night… All
activities would in future be “screened for reputational impact” as well as
profitability, Mr Jenkins said. “Our ability to build a franchise over time
depends on our reputation,” he added, admitting the bank had made some “serious
mistakes” in recent years…
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