Barclays share price: Board to scrutinise group’s investment bank

Barclays’ (LON:BARC) investment bank will come under scrutiny this week as the group holds a board meeting to discuss potential further restructuring of the underperforming division. Barclays’ divisional heads are gathering on Thursday to present their strategic plans to the group’s new chairman, John McFarlane. Tom King, the New York-based chief of Barclays’ investment bank, will be in the spotlight during the meeting, after the unit underwent a drastic restructuring last year involving 7,000 job cuts.

Barclays’ investment bank expanded aggressively by acquiring the US assets of the failed Lehman Brothers estate during the financial crisis. Once an engine of the company’s earnings, the business has become its worst performing division, weighed down by regulation and slowdown in market activity. In addition, Barclays failed to benefit as much as its rivals from a rebound in fixed income trading activity in the first quarter. Its investment banking revenues grew only two percent in the period, much less than competitors. Despite the woes, the board is not considering pulling out of the business entirely, The Financial Times yesterday reported, citing people familiar with the directors’ thinking.
Thursday’s board meeting will also see an update by Jonathan Moulds, the former Bank of America executive, who joined Barclays as chief operating officer earlier this year. Moulds is expected to reveal preparations for regulatory changes, which will force Barclays to divide its UK retail arm and its US operations into separate subsidiaries.
Barclays’ share price opened marginally higher today. As of 08:10 BT, the stock was trading 0.06 percent higher at 272.60p.
As of 08:41 BST, Tuesday, 23 June, Barclays share price is 272.82p.

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