( Financial Times ) -- Barclays will take the axe to its controversial tax structuring unit , as the UK lender seeks to clean up its image in the wake of a succession of scandals . The business , which at its peak may have generated as much as three-quarters of profits at Barclays ' investment banking operation , will be shrunk dramatically as part of the bank 's Project Transform under new chief executive , Antony Jenkins . Barclays ' actions comes as global banks from Goldman Sachs to Deutsche Bank are reviewing their business models in response to new regulations and government enforcement efforts . `` We have to take a fresh look to see if there are products and services in which ... we no longer deem it appropriate to do business , regardless of financial return , '' Rich Ricci , Barclays investment banking chief , said in an address to investors on Monday night . `` For example , elements of our tax advisory business have generated negative media and political attention . '' Mr Ricci also signalled a likely withdrawal from selling derivatives products to consumers and small business customers , following an industry-wide scandal over the mis-selling of interest rate hedging contracts to SMEs . Mr Jenkins reaffirmed Barclays ' commitment to its investment bank more broadly , silencing predictions he would significantly reduce its size . But the new chief executive , formerly head of the group 's retail banking operation , was clear that ethical behaviour would become a priority in future . All activities would in future be `` screened for reputational impact '' as well as profitability , Mr Jenkins said . `` Our ability to build a franchise over time depends on our reputation , '' he added , admitting the bank had made some `` serious mistakes '' in recent years . This summer Barclays was fined £290m by global regulators over the attempted rigging of Libor benchmark borrowing rates , triggering the abrupt resignation of chairman Marcus Agius and chief executive Bob Diamond . The tax business -- known as the `` structured capital markets '' unit -- has attracted unwelcome attention for at least three years . Though legal , the avoidance strategies it used on behalf of its clients were politically controversial . Barclays ' own group tax affairs were thrown into the spotlight twice in recent months , first over the use of a tax loophole that the Treasury retrospectively closed , then over a `` tax equalisation '' payment to Mr Diamond of about £6m . Speaking to analysts and investors , Mr Jenkins also repeated an earlier promise to report back on his strategic plan -- including details of which businesses would be shrunk -- by the first quarter of next year . But he added : `` You should not expect me to announce the break-up of the bank or an exit from whole business lines . '' Barclays ' board last month drafted in City grandee Sir David Walker as the bank 's new chairman and elevated Mr Jenkins to chief executive three weeks later , in an effort to stabilise the group following Mr Agius and Mr Diamond 's resignations . There had been a widespread expectation that Mr Jenkins would shift Barclays ' focus away from investment banking , which has traditionally generated two-thirds to three-quarters of group profits . However , bankers believe more of the rebalancing will come from the projected revival of the group 's corporate banking unit and its troubled retail banking operations outside the UK . In a question-and-answer session with analysts , Mr Jenkins would not be drawn on the extent of any change of direction , but he did talk about the group being more `` balanced '' with `` lower risk '' . © The Financial Times Limited 2012 .
UK will take the axe to its controversial tax structuring strategy . UK lender seeks to clean up its image in the wake of a succession of scandals . Just as global banks from Goldman Sachs to Deutsche Bank are reviewing their business . Barclays CEO : All activities would in future be ` ` screened for reputational impact ''