Barclays said to plan to move commodities into a 'bad bank'

Barclays Canary Wharf

Barclays is planning to move its commodities division into a so-called bad bank of unwanted assets and units to be overseen by Eric Bommensath, according to a person familiar with the plan.

Bloomberg News reports that Tom King, 53, co-head of the corporate and investment bank with Bommensath, will become its sole leader, the person said Tuesday, asking not to be identified because the change hasn’t been made public. Bommensath will oversee businesses that the London-based firm previously designated as part of its 'exit quadrant', according to the person.

Barclays CEO Antony Jenkins, 52, is reshaping its investment bank amid pressure to reduce costs and improve profitability. The company, which is scheduled to present its strategy to investors on May 8, also said yesterday that Hugh 'Skip' McGee will step down from his role as CEO of the Americas division at the end of the month.

McGee, 54, the highest-paid executive at Barclays, was one of the most senior dealmakers to join the British bank when it bought Lehman Brothers' U.S. unit. He had sought the job that’s going to King, according to two colleagues who requested anonymity.

Hit the link below to access the complete Bloomberg article:

Barclays Said to Name Bommensath to Oversee 'Bad Bank'

McGee Exiting Barclays Shows Lehman Legacy Fading Away 

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