Antony Jenkins, the new chief executive of Barclays has said he intends to make bold and speedy changes to the way the bank operates.
Mr Jenkins said he expects the bank to shrink and that it needs to “move quickly and be bold”.
Mr Jenkins said: “My expectation is that we will identify sources of inefficiency and underperformance that we will need to change. We will need to take difficult decisions.”
Mr Jenkins was brought in to replace Bob Diamond, who led Barclays when it became involved in the manipulation of Libor the interbank lending rate. Mr Diamond was forced to resign as a result of an inquiry by both US and UK regulators that saw the bank fined a total of £290 million.
Mr Jenkins wants to draw a line under the affair and lead Barclays forward but he has stopped short of saying that he will split the bank up.
He said that the bank will stop running parts of the business that have damaged its reputation but that does not mean that Barclays will sell of its investment banking business Barclays Capital.
In a conference call to investors Mr Jenkins said: "I absolutely believe that a premier investment banking franchise will be a part of it."
And Rich Ricci, Barclays head of corporate and investment banking, backed up Mr Jenkins by saying that the bank would stop doing business in areas that it no longer thought “appropriate”.
Mr Ricci said: “We have to take a fresh look to see if there are products and services in which, given the changing environment, we no longer deem it appropriate to do business, regardless of the financial return.”
However, it does seem likely that the bank will put an end to its tax planning operations and that it will stop selling derivatives to small businesses.
This area of the banks business has been investigated in the past by the Financial Services Authority (FSA). Barclays, HSBC, RBS and Lloyds agreed with the FSA to pay a £6 billion fine for mis-selling complex interest swap rate products.
Barclays is also under investigation over fees it paid to middle east potential investors when it was looking for capital investment so that it could avoid requiring a government bailout during the financial crisis.
Mr Jenkins said that the last few months had been "difficult ones for Barclays" as its past actions caught up with the bank.
Mr Jenkins said: "It's clear we have made some serious mistakes in the last few years and failed to keep pace with our stakeholders' expectations. But we have a tremendous opportunity to change."