Reuters - Top firm said under pressure to fix investment bank - and fairly quickly


Questions will need to be answered.

Reuters reports that from BZW to BarCap, Barclays bosses have spent more than three decades trying to make the British bank a profitable investment banking force, often frustrating its investors.

Now Barclays CEO Jes Staley is being given one more year to deliver on a promise to turn its investment bank into a profit engine able to weather downturns or face demands for a review of the business, shareholders told Reuters.

Returns from investment banking continue to underwhelm, despite a recent turnaround in market conditions, leading some shareholders to set Staley a deadline for an improvement.

“Assuming market conditions remain favourable, then we would really be looking to see high single digit returns on equity for this business by the next year-end, or questions will need to be answered,” Steve Davies, manager of the Jupiter UK Growth Fund, and a top 40 Barclays investor, told Reuters.

Hit the link below to access the complete Reuters article:

Barclays investors give CEO Staley year to fix investment bank

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