Barclays is very sorry about the Libor rate-fixing scandal (referred to variously as “recent events” or the “industry-wide” investigation). Barclays is in no rush as it conducts a “vigorous” search for its new CEO and chairman. Barclays’ investment bank has….done rather well.

The first question any Barclays Capital employee will be asking is whether any redundancies are planned. If Rich Ricci’s bullish stance is to be believed, the answer is a definite no. He spoke of growing market share in M&A, of how the investment in new resources was “paying off”, how the pipeline of work was “at an all-time high” and that there were no plans to focus on the bank’s key strengths (ie, fixed income) and pull back from those where it’s weaker (ie, equities).

“We always look to be as efficient as we can be…but are we planning any large reduction in size and scale or any big headcount reductions seen in other houses? No,” he said during today’s conference call.

Clients were “supportive” and the “franchise is in good health”, he says.

Headcount has been slowly falling in the investment bank, though. At the end of 2010, there were 24,800 employees, slipping to 23,600 in December 2011 and 23,300 in June this year.

Profit in the investment bank was up to £2.6bn from £2.4bn in the first half last year. The main driver was its FICC division – in particular commodities and rates – where revenues increased by 11% year-on-year. Revenues fell by 18% on last quarter, but this looks good against an average industry-wide decline of 40%. Ricci said that it had benefited from its focus on “flow-driven” products as volumes increased.

Unfortunately, equities and investment banking revenues are still declining; by 12% and 11% year-on-year respectively.

Barclays’ investment bankers are being more productive, but being paid less. Average income per employee was £276k in the first half, versus £259k last year and £170k in the second half of 2011.

Its comp ratio is shrinking – it’s now at 39%, down from 45% at this point last year. On a per employee basis, this means an average comp accrual of £108.7k ($170.3k), against £121.5k in the first half last year. The highest paying investment banks so far in 2012 – Jefferies and Goldman Sachs - accrued $228.4k and $225.7k respectively.

Separately, Barclays also revealed that another FSA investigation has begun into four current and former employers, including finance director Chris Lucas into “sufficiency of disclosure into relation to fees payable under certain commercial agreements and whether these may have related to Barclays Capital raisings in June and November 2008”. As William Wright tweets, this focuses on the £240m paid to sheikhs in Qatar and Abu Dhabi on during its emergency capital raising in November 2008.

Barclays said it was “satisfied with its disclosure obligations” but declined to comment further. It also wouldn't give any more colour on the Libor scandal or how advanced they are with the search for a new chief executive.

"We are sorry for the issues that have emerged over recent weeks and recognise that we have disappointed our customers and shareholders," said chairman Marcus Agius, adding that any potential CEO that “hasn’t got the wit to see what a great opportunity this is shouldn’t be on the list.”

Meanwhile:

Nomura IS reining in its global investment banking ambitions and senior UK staff are already leaving (Financial Times)

Nomura’s Japanese employees’ amazingly sycophantic stories about its new CEO (Financial Times)

J.P. Morgan is pushing into middle market M&A and has hired three new bankers to help it do so (Reuters)

Evercore increases Q2 profit by 19%, is optimistic about M&A activity and has upped compensation costs by 24% (Business Week)

“We’re hiring,” said John Rindlaub, president of Wells Fargo’s Asia Pacific operation. “As the other institutions have either slowed their growth or even cut back to reduce their expenses, we’ve been able to add great people.” (Bloomberg)

US regulators are preparing prosecutions against traders in 12 banks over Libor rate-fixing, the UK is taking a “slothful response” (Bloomberg)

The idea that “breaking up these institutions is going to solve the problem, I think it’s frankly too simplistic an approach.” (Deal Journal)

The last of the ICE Futures trading pits has closed (Wall Street Journal)

Facial expressions vary with culture and context, can you spot what’s written on these faces (New Scientist)