Things Are Better At Barclays But Still Not Back To 'Normal'
Oct. 13, 2015, 9:10 AM
- "Overall, while this removes one uncertainty regarding the future CEO we see it raising more uncertainties on the outlook which are likely to weigh on the shares," says Berenberg analyst James Chappell. "Sadly, having hoped Barclays (NYSE:BCS) might emerge as a long term winner in the sector, we fear it is returning to its bad old ways.”
- The issue is that Jes Staley is an investment banker. Is an investment banker (who one might infer is a fan of investment banking) being appointed as CEO to wind down the investment banking operation, or does his hiring signal a change in strategy for John McFarlane and the rest of the board.
- Barclays is lower by 2.9% in London action, and the ADRs are down 3.9% premarket.
- Previously: FT: Jes Staley to be next Barclays chief (Oct. 12)
Oct. 12, 2015, 5:01 PM
- Barclays (NYSE:BCS) is set to appoint former JPMorgan investment banker Jes Staley as its next CEO, according to the FT, with the appointment to be announced in the next two weeks, assuming a green light from regulators.
- He'll replace Antony Jenkins who was sacked in June. One source close to the board says Jenkins "did not understand investment banking." If so, the choice of Staley - an experienced investment banking hand who was once thought to be a possible successor to Jamie Dimon - represents a sizable shift for Barclays.
- Staley has been with hedge fund firm Blue Mountain Capital since departing JPMorgan in 2013.
- Previously: Barclays reportedly nearing choice on new CEO (Oct. 12)
Oct. 12, 2015, 4:13 PM
- Executive Chairman John McFarlane told a meeting of top Barclays (NYSE:BCS) executives last week he was close to appointing a new CEO, according to Sky News. Among those whispered to have a shot are Morgan Stanley's Colm Kelleher, and former JPMorgan banker Jes Staley, who was offered the role in 2012.
- McFarlane, aka "Mack the Knife," led the axing of previous CEO Antony Jenkins last June.
Oct. 5, 2015, 3:31 PM
- The Street has priced in earnings declines for pretty much every sector, but Q3 and Q4 estimates for the financials have barely budged, and consensus sees Q3 results 10% above that of a year ago.
- Morgan Stanley's Huw van Steenis, however, sees FICC revenue declines of 10-25% - far more than the 5% or so that's been talked about by bank managements at recent investor conferences - as the commodity price crash combines with collapsing fixed-income trading, and the lack of volatility in forex action.
- With just $20B in FICC revenues, says van Steenis, Q3 is shaping up to be the second worst quarter for banks in the last two years. Leaving his own bank (NYSE:MS) out of the analysis, he sees FICC revenue declines of 17% at JPMorgan (NYSE:JPM), 9% at Goldman (NYSE:GS), and 6% at BofA (NYSE:BAC) and Citi (NYSE:C).
- Bottom line: "On EPS, we are 4% below consensus on average across our coverage for 2015, and 5% below for 2016. The biggest delta is for Barclays (NYSE:BCS), BNP Paribas (OTCQX:BNPQY), and Goldman in 2015, and SocGen (OTCPK:SCGLY), HSBC, and BNP in 2016."
- Source: ZeroHedge
Oct. 1, 2015, 5:11 PM
- JPMorgan Chase (NYSE:JPM) will pay almost a third of a $1.86B settlement to resolve accusations that a dozen big banks conspired to limit competition in the credit default swaps market, Bloomberg reports.
- JPM reportedly will pay $595M, followed by Morgan Stanley (NYSE:MS) with $230M, Barclays (NYSE:BCS) at $175M, Goldman Sachs (NYSE:GS) at $164M, Credit Suisse (NYSE:CS) at $160M and Deutsche Bank (NYSE:DB) at $120M; BofA (NYSE:BAC), BNP Paribas (OTC:BNPZY), UBS, Citigroup (NYSE:C), Royal Bank of Scotland (NYSE:RBS) and HSBC would pay less than $100M each.
- The deal would avert a trial and end years of litigation by hedge funds, pension funds, university endowments, small banks and other investors, who sued as a group.
Sep. 16, 2015, 5:36 PM
Sep. 9, 2015, 6:07 PM
- New York regulators have sent letters seeking information to big banks that are primary Treasury dealers as part of a probe on potential manipulation of bond auctions, Reuters reports.
- The banks -- including Barclays (NYSE:BCS), Deutsche Bank (NYSE:DB), Goldman Sachs (NYSE:GS), Societe Generale (OTCPK:SCGLY) and Credit Suisse (NYSE:CS) -- aren't charged with specific wrongdoing at the moment, as the investigation is still in early stages.
- Boston's public employee pension fund, State-Boston Retirement System, had sued 22 primary dealers in July alleging conspiracy to manipulate Treasury auctions; meanwhile, little-known hedge fund Element Capital has been buying tens of billions of dollars worth of bonds at the auctions, well over its $6B assets under management, the WSJ reports, drawing attention from the Treasury Dept.
- Element Capital has been the largest purchaser in dozens of auctions over the past 10 months.
Sep. 3, 2015, 9:21 AM
- The buyer is Bankinter, Spain's seventh-largest lender, and the €100M price tag represents about 40% of book value. In a separate deal, Bankinter and Mapfre SA are buying Barclays' (NYSE:BCS) life insurance and pension operations in Portugal for about €75M.
- The move is in line with Barclays' plan to focus on core areas (the bank sold its Spanish retail operations last year, and its Italian unit is also on the block).
- Barclays will book an after-tax loss of about €200M. The deal is expected to close in Q1 of 2016.
Aug. 26, 2015, 6:38 PM
- A federal judge has dismissed the "Flash Boys" suit filed against Barclays (BCS +2.4%), though he says he won't "wade into the larger public debate" about high-frequency trading, and plaintiffs could amend and refile.
- Providence, R.I., and other investors had filed suit last year against Barclays and a number of other high-finance players, alleging that they had siphoned billions by rigging the markets with HFT, as described in Michael Lewis' book Flash Boys: A Wall Street Revolt.
- Judge Jesse Furman said plaintiffs failed to show complaints were "legally sufficient." City of Providence lawyers say they are discussing the decision and haven't yet decided on an appeal.
- In April, three other class-action suits against stock exchanges that were inspired by the book were thrown out by another Southern District of New York judge.
Aug. 25, 2015, 2:05 PM
- Barclays (BCS +4%) and Lloyds (LYG +3.8%) are turning in strong days after the FTSE posted a 3.1% gain - the S&P is currently up 1.5% - and Investec upgraded both British banks to Buy. Barclays was upgraded from Sell, and Lloyds from Hold.
- Investec's Ian Gordon suggests the upgrades are valuation-driven, rather than motivated by any change in fundamentals. "[W]hile we now see reasonable upside for Barclays, we think RBS offers a stronger capital story, HSBC a higher dividend yield, and One Savings Bank vastly superior growth and returns.”
Aug. 14, 2015, 2:07 AM
- Five more banks have agreed to settle U.S. investor lawsuits tied to a global currency-rigging scandal, which claimed the institutions conspired to manipulate the $5.3T-a-day foreign-exchange market.
- HSBC (NYSE:HSBC), Barclays (NYSE:BCS), Goldman Sachs (NYSE:GS), BNP Paribas (OTC:BNPZY) and Royal Bank of Scotland (NYSE:RBS) now join a list of nine firms which previously settled the class actions, bringing the total amount investors have recovered to $2B.
Aug. 12, 2015, 4:20 AM
- Credit Suisse (NYSE:CS) and Barclays (NYSE:BCS), two of the largest operators of dark pools, have entered settlement negotiations with the SEC and NY attorney general over facilitating unfair advantages, incorrect stock pricing and other wrongdoing in their trading platforms.
- Credit Suisse is in talks to pay a fine in the high tens of millions, which would be the largest fine ever levied against a private trading venue operator, while Barclays' discussions also suggest a large fine.
Jul. 29, 2015, 6:22 AM
- Barclays (NYSE:BCS) reports 1H15 total income net of insurance claims at £12.98B down 3% as non core income reduced to £42M.
- Profit before tax at £3.73B up 11% reflecting improvement in core operating business,
- EPS at £0.13/share vs. £0.11/share in 1H14.
Jul. 29, 2015, 3:46 AM
- Impatient with the pace of change, Barclays (NYSE:BCS) Executive Chairman John McFarlane is set to wield the axe even more quickly at the bank, after firing CEO Antony Jenkins just a few weeks ago.
- Barclays now plans to cut non-core assets from £57B ($89B) to £20B by the end of 2017 and set aside more money to cover the cost of redress.
- The move comes as the lender reported a sharp rise in second-quarter net profit to £1.15B ($1.8B) from £161M in the same period last year.
Jul. 24, 2015, 7:40 AM
- Plans to sell Barclays' (NYSE:BCS) retail operations in both Portugal and Italy have speeded up since John McFarlane took over as chairman, and the bank has reportedly entered into exclusive talks with Spain's Bankinter for the Portuguese unit.
- The sale is likely to exclude the bank's investment banking and credit card operations in that country.
- Barclays has 85 branches in Portugal and 90 in Italy.
- Source: Reuters
Jul. 23, 2015, 2:41 PM
- Elkhorn founder and CEO Ben Fulton once ran ETFs at Invesco's Powershares before leaving in 2013 and earlier this year launched his own suite of products. The strategic partnership with Barclays (NYSE:BCS) will be to collaborate on new investment strategies and products.
- Barclays: "Elkhorn is pioneering a new chapter in investment management by developing a wide array of investment structures -- including on UITs, ETF-linked and market-linked solutions -- based on world-class research."
- Fulton: "We are seeing a greater demand for more custom investment products across a variety of market segments. By partnering with Barclays, we are able to offer clients a range of innovative investment opportunities."
Barclays Plc operates as a bank holding company that engages in the business of providing retail banking, credit cards, corporate and investment banking and wealth management services in Europe, the Americas, Africa and Asia. The company operates in nine segments: UK Retail & Business Banking,... More
Industry: Foreign Money Center Banks
Country: United Kingdom
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