Investors are abandoning Barclays' stock as legal costs spiral
Investors are abandoning the Barclays stock this morning after the British bank unveiled a really depressing set of results.
The stock tanked by over 10% by 10 a.m. GMT as traders focused on the net loss of £394 million for 2015, legal costs and fines of more than £4.3 billion and the near halving of its dividend:
Shares tanked so much in early trading that they were briefly suspended, as first reported by Sky News.
Judging by the massive slump in the bank's stock this morning, it looks like traders are seriously unhappy with newly appointed CEO Jez Staley's decision making.
Today, Barclays also announced that it plans to sell its African banking arm and split up into two divisions - one focusing on UK high street banking, and the other handling international corporate and investment banking activity.
Barclays already had a big change to its structure last month when it said Tom King, one of the most prominent bosses at the bank, is leaving. Barclays confirmed in an emailed statement that King, the CEO of the group's investment bank, will retire on March 4.
Meanwhile, Staley has put the bank on a hiring freeze - leading to its headcount falling by 5,700 as a result. He also warned more cuts will take place.
Before King announced that he was leaving the bank, he said in a memo in January that Barclays would close its Moscow office, shutter stock trading in Asia, and make changes to the US markets business. Bloomberg also reported at the time that 1,000 jobs in the investment bank would be cut.
That's in addition to an existing plan to cut 7,000 jobs from the division.