Tue, Feb. 10, 1:54 AM
- The NY Department of Financial Services has sent subpoenas to Goldman Sachs (NYSE:GS), Credit Suisse (NYSE:CS), BNP Paribas (BNZPY) and Societe General (OTCPK:SCGLY), Reuters reports, expanding its probe of whether banks' electronic trading platforms allow them to front-run clients in the forex market.
- At issue is a latency period between the time an offer is floated and accepted.
- The department is already probing Barclays (NYSE:BCS) and Deutsche Bank (NYSE:DB) over similar concerns and installed monitors at those banks in recent months.
Mon, Feb. 9, 1:48 AM
- The U.S. Department of Justice is investigating whether Barclays (NYSE:BCS) and UBS (NYSE:OUBS) sold structured products without disclosing the profit they were making from currency trades used to generate the products' returns, FT reports.
- Five major banks, including UBS, were fined $3.4B in November to settle forex allegations, although the DOJ was not one of the agencies involved in the deal. Barclays also did not take part in the earlier settlement.
Tue, Feb. 3, 2:52 PM
- "Barclays' (BCS +6.2%) non-core division looks to be mis-priced," says the Morgan Stanley team of Chris Manners and Fiona Simpson, upgrading the stock to Overweight from Equal Weight. The two say the bank's non-core unit has lower NPL exposures and lower risk weight density than peers, and thus a lower scope for losses than is being priced in.
- "Capital concerns should fade as non-core capital is released and legacy conduct issues are resolved. We think a ‘steady state’ 13% CET1 ratio is almost in sight, and forecast CET1 of 13.2% by Dec 2017."
- As for the core bank, the due say its has two strong businesses with clear growth opportunities. The investment bank, however, "is highly capital consumptive and delivering subpar returns, and we expect management to continue to strictly ration capital to the division."
Tue, Feb. 3, 1:20 PM
- The EU last year put into place a new bank-resolution law which would force losses on bondholders - 8% of a failing bank's liabilities would have to be wiped out before a bailout could be discussed.
- Without the systemic support, S&P cuts ratings on Credit Suisse (CS +1.9%), HSBC (HSBC +1.5%), Barclays (BCS +6.2%), Lloyds (LYG +3.6%), RBS (RBS +3.6%), and Standard Chartered (OTCPK:SCBFF +2.4%).
- Among those on watch for a cut, says S&P, is Deutshce Bank (DB +3.5%).
Thu, Jan. 22, 2:00 AM
- The Barclays (NYSE:BCS) dark pool drama continues, after NY AG Eric Schneiderman accused the British bank of defying subpoenas seeking the testimony of two executives.
- Previously, the AG accused the bank of false representation and favoring high frequency traders over other investors in its dark pool.
- Barclays says Schneiderman is overreaching, but it will "continue to seek to cooperate" with the lawsuit.
- Previously: Schneiderman rebuts Barclays motion to dismiss dark pool lawsuit (Sep. 17 2014)
- Previously: Barclays begins dark pool probe (Jun. 27 2014)
Tue, Jan. 20, 9:16 AM
Fri, Jan. 16, 9:46 AM
Mon, Jan. 12, 8:43 AM
- The collapse in oil prices is set to crimp one of the few fast growth areas for banks since the financial crisis - lending to the energy industry. Right now, we're just talking about a slowdown in lending, but Charles Peabody - who saw the losses incurred by Texas banks during the 1980s energy slump - expects the current situation to lead to losses as well.
- "It’s been a hot industry, probably a little too hot,” says Cullen/Frost (NYSE:CFR) CEO Dick Evans, whose bank has a sizable energy business. “But it is not time to panic. We have been in the game a long time. I am comfortable with what we have been doing.”
- The flip side of energy issues might be stronger business for banks elsewhere as consumers find themselves with more money in their pockets after filling up.
- Among the more sizable banks, Scotiabank (NYSE:BNS) leads the way with 34.6% of its investment banking revenue coming from energy companies. Next is RBC (NYSE:RY), with 20.2%, and then Wells Fargo (NYSE:WFC) with 14.9% and Citigroup (NYSE:C) with 11.8%. Others include Barclays (NYSE:BCS) with 10.7%, Credit Suisse (NYSE:CS) with 8.1%, and Bank of America (NYSE:BAC) with 7.4%.
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 six major banks, including UBS (NYSE:UBS), HSBC (NYSE:HSBC), Citigroup (NYSE:C), Royal Bank of Scotland (NYSE:RBS), JPMorgan (NYSE:JPM) and BofA (NYSE:BAC), a total of $4.3B 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
BCS vs. ETF Alternatives
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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