Barclays likely to unveil more investment banking cuts, accelerate sales of assets

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'The downsizing or exit from areas such as long-dated rates, securitized products, structured credit, commodities and emerging markets needs to be accelerated'.

John McFarlane, frustrated with the slow pace and poor returns at Barclays, will unveil more cuts to the investment bank and accelerate sales of unwanted assets as he adopts an 'aggressive approach', Citigroup said.

Bloomberg News reports that the chairman’s other priorities are to continue the bank’s 'ambitious' cost-cutting program and increase revenue in U.K. mortgages and credit cards, Citigroup analysts Andrew Coombs and Ronit Ghose, with a buy rating on the stock, wrote in a note on Wednesday.

Barclays will announce earnings on July 29 along with a revised strategy for the investment bank, which lags behind profitability at the rest of the firm.

'McFarlane will refocus the investment bank on U.S. and U.K., downsizing parts of the fixed-income operations, while building up its advisory and deal-execution activities', the analysts said in the report. 'The downsizing or exit from areas such as long-dated rates, securitized products, structured credit, commodities and emerging markets needs to be accelerated'.

To access the complete Bloomberg News article hit the link below:

Barclays McFarlane Expected to Signal Aggressive Cuts, Citi Says

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