Barclays to create 'bad bank'

According to the FT.com, the internal bad bank will be run by Eric Bommensath, the co-head of its investment bank. The unit will contain a number of its business operations which Barclays is either hoping to sell or wind down as well as the majority of its commodities operation, which the bank announced a week ago it is hoping to exit. The BBC claimed last night that the move could result in the loss of up to 8,000 jobs worldwide.

Chief executive Antony Jenkins is expected to outline the creation of the unit at the bank's strategy review, which takes place next week. Just last week the head of Barclays' US business, Skip McGee, stepped down despite only having been in the role for a year, a move which the bank described as the result of the vast regulatory burden it faces in the US.