BBC News, 9
February 2013
Big Banking
Antony Jenkins announced a strategic review of operations in the light of scandals at the bank |
The bank
will still help clients with their tax arrangements on transactions, but will
not engage in activities where the main purpose is to avoid tax.
The move is
part of a wide-ranging strategic review to be published on Tuesday.
Full-year
results - expected to be strong - will also be published that same day.
'New era'
Barclay's
Structured Capital Markets business was widely regarded as its tax avoidance
unit. It is thought to have saved the bank and its clients billions of pounds
over the years.
But its
closure, according to insiders, marks an important and significant break with
the past, BBC industry correspondent John Moylan reports.
He says the
move is the first tangible outcome of a long-awaited strategic review, called
Transform, which was launched in the wake of a series of scandals, including
the fixing of Libor rates.
On Tuesday
Barclay's chief executive Antony Jenkins is expected to say that the bank is
changing, that the old ways were not the right way to behave, and he will call
for a new approach for a new era of banking.
Earlier
this month Mr Jenkins waived his bonus for last year, saying it would be wrong
for him to receive it, given what had been a "difficult" year for
Barclays.
It is
thought Mr Jenkins was in line to receive about £1m of a potential maximum
entitlement of £2.75m.
Last summer
Barclays was fined £290m ($450m) by the US and UK regulators for attempting to
manipulate the inter-bank lending rate.
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