Dec. 11, 2014, 6:50 AM
- The New York's Department of Financial Services is investigating Deutsche Bank (NYSE:DB) and Barclays (NYSE:BCS) over algorithms they used on their trading platforms which may have manipulated foreign exchange rates.
- Ben Lawsky has ordered a monitor to be installed at Deutsche Bank and already has one in place at Barclays.
- The two banks were not included in the $3.4B forex settlement in November, leaving some to speculate that Lawsky wished to go after the banks later and demand larger penalties.
- Previously: New York bank regulator reportedly opens currency trading probe (Feb. 05 2014)
Nov. 27, 2014, 10:08 AM
- Upgrades Barclays (NYSE:BCS) to Buy from Neutral.
- Price target rises 10% to 300p (26% upside)
- BOE's “more benign” leverage ratio means BCS is less likely to need additional capital, and will be under less pressure to shrink low risk-weight positions.
- Barclays has the lowest leverage ratio of major U.K. lenders, and was considered most at risk from the BOE’s decision.
Nov. 26, 2014, 6:32 PM| 1 Comment
Nov. 12, 2014, 3:49 PM
- "It probably isn't good news," writes George Hay of Barclays (BCS -2.3%) not being part of the industry-wide forex settlement announced earlier today.
- Acknowledging the delay could just be procedural, Hay, however, notes Barclays is the only one of the group subject to regulation by New York's Department of Financial Services and its penalty-happy boss Ben Lawsky. The delay could just mean more time is needed to finish the probe, but it could also mean Barclays is wiling to pay more in fines down the line in lieu of having its banking license for New York pulled by Lawsky.
- Previously: Global banks fined $3.4B in forex probe
Nov. 12, 2014, 2:24 AM
- Global regulators have fined five major banks, including UBS (NYSE:UBS), HSBC (NYSE:HSBC), Citigroup (NYSE:C), Royal Bank of Scotland (NYSE:RBS) and JPMorgan (NYSE:JPM) a total of $3.4B over allegations of price fixing and manipulating benchmarks in the $5T-a-day foreign exchange market.
- The penalties were imposed by Britain's Financial Services Authority, the U.S. Commodity Futures Trading Commission and Swiss regulator FINMA.
- Barclays (NYSE:BCS) had been expected to be part of the settlement but the FCA said its investigation into the U.K. bank was continuing.
Nov. 4, 2014, 1:42 PM
- The changes to Barclays (NYSE:BCS) indices include lowering the minimum credit rating requirements for the Government Inflation-Linked Bond and Euro Government Inflation-Linked Bond Indices; allowing Malaysian government bonds to become eligible for the Global Aggregate and Asian-Pacific Aggregate Indices; and updating the Barclays’ Emerging Markets Index to exclude euro area members on the date of their adoption of the euro currency.
- As stated by Barclays in the press release: "These decisions were made after carefully evaluating the evolving fixed income landscape and incorporating stakeholder feedback from a diverse set of global investors who use Barclays’ indices as portfolio benchmarks and measures of broad fixed income market returns."
- Barclays is also in the works of updating the U.S. MBS Index, but has not yet come to a conclusion on the possible methodology changes; they will continue to review the methodology in Q1 2015.
Oct. 31, 2014, 10:38 AM
- Royal Bank of Scotland (RBS +4.8%) is the latest to do so, today announcing the setting aside of $640M for potential settlements in the currency-rigging investigations.
- In total, seven major U.S. and European banks have boosted their legal reserves by $6.5B in October. Last night, Citigroup (C +0.4%) was forced to cut its Q3 earnings by $600M amid "rapidly-evolving" probes.
- UBS has put aside the most of any single bank this month - $1.9B. Next in line is Deutsche Bank (DB +0.7%) with $1.1B, and JPMorgan (JPM +1.3%) with $1B. None of the lenders disclosed exactly how much was specifically for foreign exchange, and none have yet been formally accused of wrongdoing.
- Barclays (BCS +5.6%) reserved $800M for FX-related settlements, and Credit Suisse (CS +0.5%) $400M.
- ETFs: XLF, FAS, FAZ, UYG, VFH, IYF, IAI, SEF, IYG, FXO, FNCL, FINU, RWW, RYF, FINZ
Oct. 30, 2014, 8:50 AM
Oct. 10, 2014, 5:22 AM
- The U.K.'s Financial Services Authority has accused six banks, including JPMorgan (NYSE:JPM) and UBS (NYSE:UBS), of system and control failures in their forex operations, the FT reports.
- The allegations are part of the FSA's investigation into the possible manipulation of currency markets, which is one of a number of probes by authorities around the world.
- Last month, the U.K. regulator started settlement talks with the two banks, as well as with Barclays (NYSE:BCS), Citigroup (NYSE:C), HSBC (NYSE:HSBC) and RBS (NYSE:RBS). The discussions could lead to fines of £1.5B in total.
- By focusing on an inability to stop staff from engaging in misconduct rather than on actual manipulation, the FSA could help the banks limit the impact of lawsuits that have been filed in the U.S. over forex rigging.
Oct. 8, 2014, 2:18 AM
- Eighteen of the world's largest banks, ranging from Credit Suisse (NYSE:CS) to Goldman Sachs (NYSE:GS), have agreed to give up the right to "close out" deals on derivatives contracts if a financial institution runs into trouble, FT reports.
- The International Swaps and Derivatives Association is due to announce the agreement to change its “protocols”, which govern the $700T market, in the next few days. They will take effect from January 1, 2015.
- Related stocks: HSBC, JPM, OTC:BNPZY, DB, BCS, BAC, SAN, C, RBS,
Sep. 29, 2014, 6:43 AM
- UBS (NYSE:UBS) has entered settlement talks over allegations it was involved in manipulating foreign exchange rates.
- Although the bank did not identify a regulator, Reuters was informed by sources on Friday that Britain's Financial Conduct Authority was talking to UBS and five other banks - Barclays (NYSE:BCS), HSBC (NYSE:HSBC), Royal Bank of Scotland (NYSE:RBS), JP Morgan (NYSE:JPM) and Citi (NYSE:C).
- A settlement could result in each bank being fined hundreds of millions of pounds, depending on the severity of the misconduct.
- As well as the FCA, authorities in the U.S., Switzerland and Hong Kong are investigating the $5.3T a day foreign exchange market.
Sep. 23, 2014, 4:31 AM
- Barclays (NYSE:BCS) is expected to be fined close to £38M ($62.3M) for intermingling billions of pounds of client money with its own funds in its investment bank between 2007 and 2012.
- The fine, a record for this type of misconduct, is expected to be announced by the U.K.'s Financial Conduct Authority as early as today.
- Meanwhile, CEO Antony Jenkins has announced that the bank will "robustly" defend its dark pool allegations, which accuses the bank of misleading clients about how its dark pool operated.
- BCS -1.2% premarket
Sep. 22, 2014, 2:42 PM
- Akshaya Bhargava will join Barclays (BCS -0.9%) on October 13 as CEO of wealth and investment management, replacing Peter Horrell who stepped down in June. Bhargava spent 22 years at Citigroup, leading teams in India, London, and the Czech Republic. In 2010, he founded his own business which was acquired by State Street last year.
- Barclays is in the middle of a major restructuring which includes the cutting of 19K jobs. Going forward, the bank will focus on four core areas: retail and corporate banking in the U.K., credit cards, banking in Africa, and investment banking.
Sep. 19, 2014, 12:25 PM
- A check of European closing prices finds the euphoric early reaction to the "No" vote from Scotland mostly faded by day's end. The Stoxx 50 (NYSEARCA:FEZ) closed just 0.2% higher, with the U.K.'s FTSE 100 (NYSEARCA:EWU) gaining 0.3%.
- Looking at U.K. bank ADRs: RBS (RBS +1.2%), Barclays (BCS -0.9%), Lloyds (LYG +0.5%), HSBC (HSBC -0.2%).
- Dealing with its own separatist movement, Spain (NYSEARCA:EWP) managed just a 0.1% gain.
- Previously: Euro shares lean green on "No" vote
- Previously: Might Catalonia secession fears ebb following Scotland vote?
Sep. 17, 2014, 3:52 PM
- Though most of the polls give the "No" (to breaking away from the U.K.) camp the lead, the pound (NYSEARCA:FXB) is behaving a bit nervously. It's now slightly lower on the session after being up nicely this morning following a larger-than-expected decline in unemployment.
- Independence would be "an economic trapdoor down which we go, from which me might never escape," says former U.K. PM Gordon Brown in the sort of fear-mongering comment becoming fairly typical from politicians who support the status quo.
- “Secession would be a catastrophe for Scotland,” says Spanish foreign minister Garcia-Margallo. “It would start a process of Balkanization that nobody in Europe wants.” Spain, of course, has its own secession issues in Catalonia.
- The U.K. banks are showing little nervousness, with Barclays (BCS +0.8%), RBS (RBS +0.8%), and Lloyds (LYG +1.5%) all in the green, and HSBC (HSBC) just marginally lower.
- ETFs: EWU, EWUS, FKU, DXPS, DBUK, QGBR
Sep. 17, 2014, 2:14 AM
- New York Attorney General Eric Schneiderman has defended his position over the Barclays (NYSE:BCS) dark pool lawsuit, calling the bank's motion to dismiss the case "misguided."
- Schneiderman reasserted allegations that Barclays misled customers by favoring its own dark pool when routing client orders and chose high frequency traders over other investors.
- The bank will have until Oct. 12 to respond, after which the case will go to trial if a settlement isn't reached.
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Barclays PLC is a financial services provider engaged in personal banking, credit cards, corporate and investment banking and wealth and investment management. It operates in Europe, the Americas, Africa and Asia.
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