'It does not look good for the bank at the moment'.
The Financial Times reports that some Barclays shareholders are calling for a management shake-up at the top of its investment banking division, as the group faces an escalating political row over a decision to pay higher bonuses despite falling profits.
'We think there needs to be change at the top of the investment bank', said one top 15 shareholder. Another top 25 shareholder in Barclays said: 'It is a difficult thing to shrink an investment bank, but Barclays is not getting to grips with costs. It does not look good for the bank at the moment'.
Shareholders said Jenkins had failed to convince them that he had a grip on costs at the investment bank when he conducted roadshows after Barclays’ annual results last month. 'The market hasn’t been wowed by their performance and their strategy', said the top 15 shareholder. 'If he axes them (King and Bommensath) at least he shows that he is the one in control rather than the other way round'.
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