View more on these topics

Barclays to shrink tax advisory unit in reputational clean up

Barclays is to shrink its tax structuring unit as new chief executive Anthony Jenkins pledges to clean up the bank’s image.

The business, which is known as the structured capital markets unit, made up to three-quarters of profits at Barclays’ investment banking operation at its peak, according to reports.

In a call with investors yesterday, Barclays investment banking chief Rich Ricci said the bank would review what products and services it no longer deemed “appropriate to do business” in.

The Financial Times reports Ricci as saying: “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.

“For example, elements of our tax advisory business have generated negative media and political attention.”

Ricci also said the bank was likely to withdraw from selling derivatives to consumers and small businesses, following an industry-wide scandal over the misselling of interest rate swaps to SMEs.

The FT reports on the same call to investors, Jenkins reaffirmed its commitment to investment banking but said ethical behaviour would be the priority in the future.

He said: “Our ability to build a franchise over time depends on our reputation.”

In July, chief executive Bob Diamond and chairman Marcus Agius resigned over the Libor-rigging scandal which saw the bank fined £290m by the FSA and US authorities after it admitted that derivative traders manipulated Libor. Anthony Jenkins, head of the bank’s retail and business banking operations, replaced Diamond as chief executive at the end of last month.


‘Regulation is stifling shared ownership’

Nationwide is warning that regulations are undermining the growth of shared ownership and shared equity lending. Speaking at a Westminster Social Policy Forum on housing last Thursday, Nationwide head of mortgage strategy and policy Andrew Baddeley-Chappell warned that regulations were stifling the sectors. His warning came the same day as the Government unveiled a £280m […]

Hodge Lifetime considering drawdown lifetime mortgage launch

Hodge Lifetime is considering launching a drawdown lifetime mortgage that allows customers to release smaller chunks of cash instead of receiving the full agreed amount at the outset. Hodge has not yet decided on the product features and has no firm launch date. However, Mortgage Strategy understands the provider would offer customers the ability to […]

FOS sees shift away from claims firms

The Financial Ombudsman Service has seen a shift away from the use of claims management companies with half of payment protection insurance complaints referred directly by consumers. The FOS has published its latest complaint data today showing the most complained about firms between 1 January and 30 June this year. It received 135,170 new complaints […]

Champion the small-scale developer

Traditional development finance must price in project and liquidity risk, but if your project is completed and you have begun selling units you could be eligible for cheaper funding, writes Matthew Tooth of Lendinvest. A product which prices purely for liquidity risk is one way to help developers lower their costs. This type of product allows […]


News and expert analysis straight to your inbox

Sign up