The biggest problem Jenkins faces is the investment bank, which despite the critics, is responsible for a significant portion of Barclays' revenues (and which was not responsible for the LIBOR debacle in any case). Jenkins will have to walk a fine line to ensure that the investment bank curtails undue risk, yet remains a credible player in order to serve corporate clients and contributes to corporate earnings.
Secondly, we have JPMorgan Chase, which may come as a surprise to some. Reuters reports that JPMorgan faces sea of trouble resolving its 'Whale' probe, the trading scandal that saw the bank lose $5.8bn earlier this year.
The news agency says that 'U.S. authorities are interviewing witnesses in both the United States and Europe to determine if three former London-based traders and others who worked with them at JPMorgan tried to hide some of the mounting losses during the first quarter of this year, said people familiar with the situation'.
The key issue for JPMorgan, however, is that the firm can't afford another slip-up of any kind any time soon. To do so would simply give further ammunition to those who believe that the bank is too big to manage. With this in mind, the firm is rigorously reviewing all risk activities, with The Wall Street Journal reporting earlier this week that the bank is also looking at its dealings with a raft of financial counterparties for whom it conducts clearing and settlements services.
In the meantime, Reuters has reported on a Deutsche Bank note issued Friday which warns that investment banks still need to cut headcount.
Deutsche analyst Matt Spick said in the note: 'To the extent that investment banks are not delivering the profits they should, this is down to industry fragmentation and the related issue of costs being too high'.
Finally, in another pop at the industry, The Financial Times reports that German Finance Minister Wolfgang Schäuble has now wadded into the banker bonus debate. The newspaper quotes Schäuble saying: 'We need to set incentives for managers to act in the long-term interest of their banks. Immediate cash bonuses for top bank executives should not exceed their fixed pay'.