Millions for 45 Bankers
A GRoUP of 45 bankers stand to make more than [pounds sterling]240 million between them after they quit Barclays to take on a contract to manage [pounds sterling]7.5 billion of the bank's riskiest assets, it emerged today.
The deal was announced by Barclays yesterday, but the true extent of the potential profit for the bankers taking on the so-called toxic assets only emerged this morning.
They are led by Brits Michael Keely, who was one of the senior executives at Barclays Capital, and Stephen King who headed its mortgage trading arm. The team has registered the new fund in the Cayman Islands, and has set up a fund management business in New York which will receive [pounds sterling]24 million a year from Barclays for the next decade to manage the toxic assets.
If the products increase in value over that time, their profit will be far bigger. Meanwhile, Barclays is retaining the risk of losses if the products default. …