Barclays Slashes Investment Bank Jobs, UBS Faces Huge Fine: Financial Business Review

Barclays (NYSE:BCS) will slash up to 2,000 jobs in its investment bank as it conducts a broad restructuring, according to inside sources, as the firm becomes the most recent player in a worldwide series of banks that are reducing costs. The job cuts should be announced early in 2013, but would affect a relatively small slice of Barclays’ total investment-banking workforce of about 23,000 full-time employees.

Thomson Reuters Corporation (NYSE:TRI) supplies data that is responsible for the administration of the Libor and now wants to run a stricter new system following assurance by regulators in the United Kingdom that it is not being examined over attempts to rig world interest rates. The Financial Services Authority has said that the future administration of Libor should still to be operated by a private organization. Managing Director Martin Wheatley wants to set up links between the submissions from banks and transactions on markets to reinforce Libor’s credibility.

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UBS (NYSE:UBS) may be fined more than $1 billion by regulators in the United States and the United Kingdom for attempts at rigging world interest rates, a figure that represents more than double the amount levied against Barclays, according to an inside source. Penalties from the Commodity Futures Trading Commission, the Financial Services Authority and the Justice Department could be announced by next week, said the source, who added that the final figures are still being negotiated and are subject to modification. Meanwhile, The Royal Bank of Scotland Group (NYSE:RBS) is in discussions with U.S. and U.K. authorities to resolve issues regarding Libor and that fine is likely to be more than for Barclays and under the amount levied against UBS as well.

On Thursday, Harbinger Gr0up (NYSE:HRG) announced that its registered secondary public offering of 20 million shares of common stock by Harbinger Capital Partners Master Fund I, Harbinger Capital Partners Special Situations Fund, and Global Opportunities Breakaway has been priced at $7.50 per share.  Also, the underwriters have an option for 30 days to purchase up to an additional 3 million shares.  The firm will neither sell shares nor receive any proceeds from the offering.

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