Page 83 - Bank Case Studies

Staley’s strategy of retrenchment was to redevelop Barclays’

investment banking. To this end he faced the sceptics who

questioned his strategy of building a trans-Atlantic

investment banking powerhouse in a climate where there

was excess capacity.

“He had faced down calls to spin off or radically shrink

the investment bank, arguing it serves as a valuable

counterweight to the consumer and credit card

businesses that may be vulnerable to any slowdown in
the U.K. economy after Brexit.” (8)

Barclays is the U.K.’s second-biggest bank by assets, and

investment banking is about half of its revenues in 2017.

Staley said the board was focused “squarely on improving

profitability” after four years of costly restructuring that saw

it strip out more than £5bn of costs, exit Africa and all retail
banking outside the UK, and reduce its headcount by

60,000.

“It would be wrong to say we are just investing in our

markets business. We want to have a balanced,

diversified business. Diversification is the safest place

to be as a bank.” Staley (10)

Barclays reduced its head count by 56,000, sold 22

businesses around the world and closed its retail banking

business across Africa and continental Europe, Staley said.