Wed, Jun. 17, 10:19 AM
- Barclays (NYSE:BCS) will no longer make a market for residential mortgage-backed securities not backed by the GSEs, according to Adam Yarnold, the lender's head of securitized-product trading in the U.S.
- With new U.K. (not U.S. though) regulations requiring the need for more capital to be held against non-agency paper, the move makes sense as Barclays looks to improve its ROE. And Barclays isn't alone - late last year, Royal Bank of Scotland announced its complete exit from the U.S. mortgage market.
- Though plunging in size since the financial crisis, the U.S. non-agency market is still a $700B one, with the biggest dealers trading about $1.6B per day last week.
Wed, Jun. 10, 10:01 AM
- More than six years after the bottom, only four of the globe's biggest banks sport stock prices trading at a premium to book value. Leading the way is UBS at about 1.4x book. Goldman Sachs (NYSE:GS), JPMorgan (NYSE:JPM), and Morgan Stanley (NYSE:MS) also trade for north of book.
- Deutsche Bank (NYSE:DB) - whose ROE of 2% is about one-tenth of what it was pre-crisis - brings up the rear at just about 0.5% of book. Barclays (NYSE:BCS) sells for roughly 0.7x book, and Bank of America (NYSE:BAC) only slightly more than that.
- Checking further on ROE, Goldman leads the way at about 12%. Citigroup (NYSE:C) is less than 5%, but stands out as being the only bank with a higher ROE today than before the crisis.
- Looking at total return since the crisis, Goldman again leads the way at about 170%, with Morgan Stanley and JPMorgan a close second/third. Citigroup is the only major bank with a negative total return over that time frame.
- Source: Bloomberg
Tue, Jun. 9, 1:09 PM
- Citing the reduced prospect of government support in a times of stress, S&P cuts the credit ratings of Deutsche Bank (DB -2.4%), Royal Bank of Scotland (RBS +0.7%), and Commerzbank (OTCPK:CRZBY +0.1%) to BBB+, three notches above junk territory. Barclays (BCS +0.2%) is downgraded to A-, one notch above the other three.
- For RBS, Barclays, and Commerzbank, it was a one-notch downgrade. For Deutshce, two notches.
- Source: WSJ
Mon, Jun. 8, 8:12 AM
- As of May 31, Barclays (NYSE:BCS) had about 180 financial advisors in the U.S. managing about $56B in assets.
- As part of the deal, Stifel (NYSE:SF) will be the U.S. private wealth distribution partner for certain of Barclays' equities and credit new issue securities in the U.S.
- The deal is expected to close in mid-November.
- A conference call is set for 8:30 ET.
- Source: Press Release
- Previously: Stifel is the frontrunner to to buy Barclays' U.S. wealth management unit - Reuters (May 31)
Fri, Jun. 5, 11:46 AM
- Of the $1.1B in assets still disputed by the Lehman trustee, Barclays (BCS -0.4%) will receive all but $80M. The bank expects to recognize a pretax gain of about $750M in Q2 thanks to the settlement.
- Barclays, of course, acquired most of Lehman's North American brokerage assets in a hasty deal crafted in 2008.
Sun, May 31, 12:27 PM
- In February, Stifel (NYSE:SF) agreed to acquire Sterne Agee for $150M. Sterne Agee has about 730 brokers; together with those now working at Barclays Wealth Americas, it would bring Stifel's brokerage force to more than 3,000.
- Barclays' unit is the former brokerage arm of Lehman Brothers.
- Barclays has been reaching out to potential acquirers for the business for several weeks because it views it as non-core.
Fri, May 22, 12:10 PM
- Welcome back my friends to the show that never ends ...The New York Department of Financial Services is probing more abuse of forex markets by the banks - this time by the use of automated trades driven by computer algorithms, reports the FT.
- Findings could indicate more widespread abuse than what U.S. and U.K. authorities disclosed on Wednesday (along with nearly $6B in fines and a number of guilty pleas). Sources remind that this week's charges related to manipulation performed by bank employees, but this probe covers electronic trading, which accounts for the majority of forex transactions.
- Trading platforms under the scope include those from Barclays (NYSE:BCS) and Deutsche Bank (NYSE:DB), and information has been subpoenaed from BNP Paribas (OTCPK:BNPQF), Credit Suisse (NYSE:CS), Goldman Sachs (NYSE:GS), and SocGen (OTCPK:SCGLY).
- The investigation into Barclays is the most advanced, but DFS has initially reached similar nefarious conclusions about the goings-on at Deutsche too. The probes of the other lenders are at even earlier stages.
- Previously: Lawsky stepping down as New York's top bank regulator (May 20)
Thu, May 21, 7:58 AM
- Just having been hit with $3B over currency-rigging charges yesterday, Barclays (NYSE:BCS) and RBS will have to set aside another $11B within two years, according to JPMorgan.
- For RBS, it still faces billions in potential MBS costs, and Barclays isn't finished with forex-related fines. Both, says JPMorgan, will need to top up reserves to compensate customers for payment protection insurance they didn't want or need.
Wed, May 20, 10:10 AM
- Those facing criminal charges from the DOJ are UBS (already reported, the stock is up 3.4% today), Barclays (BCS +2.5%), Citigroup (C -0.5%), JPMorgan (JPM -0.4%), and RBS (RBS +1.6%).
- Bank of America (BAC -0.4%) faces a $205M fine by the Fed, but no criminal charges. Fines by the Fed for the other banks range from $274M-$342M.
- There are fines from other regulators as well, with the total for all the banks summing to $5.8B. Barclays looks to be hit the hardest on that front, with total monetary penalties of $2.4B.
Mon, May 18, 3:59 AM
- The U.K.s Financial Conduct Authority is expected to fine Barclays (NYSE:BCS) at least £250M to settle allegations of forex manipulation, the Daily Telegraph reports.
- The sum would be a record for the U.K. regulator, outstripping the £234M that UBS had to pay in a deal in November.
- Overall, RBS, UBS, JPMorgan and Citigroup, as well as Barclays, are bracing for total penalties over over $4B that authorities on both sides of the Atlantic are expected to announce on Wednesday.
- That may not be the end of the matter though - New York's Department of Financial Services is looking into allegations that Barclays wrote algorithms to automate the rigging of currency benchmarks.
Thu, May 14, 7:55 AM
- "Guilty" is the new "neither admitting nor denying the charges."
- Yes, the DOJ looks set to extract guilty pleas on felony charges from five big banks over forex rigging, but life will go on for the lenders without much of a hiccup (after paying billions in fines), according to DealBook.
- Barclays (NYSE:BCS), JPMorgan (NYSE:JPM), Citigroup (NYSE:C), RBS, and UBS are the five whose holding companies will plead guilty, according to the report.
- While the guilty pleas are a nice feather in the caps of prosecutors, they seem to me more symbol than substance - too harsh a penalty would imperil banking operations, and behind the scenes, bank lawyers are working the phones with regulators to assure the felons won't be barred from certain businesses.
Fri, May 8, 9:16 AM| Fri, May 8, 9:16 AM | 4 Comments
Fri, May 1, 12:23 PM
- "The malaise from the lackluster investment bank strategy has worsened,” says Berenberg's James Chappell, calling on Barclays (BCS -1.5%) to either commit to a full-service investment bank or dramatically downsize the unit.
- Cost cuts allowed the investment bank to return to profitability in Q1, but growth stalled, with the investment bank reporting a 9.1% ROE. That's up from 2.7% in 2014, but well short of the 12% target for 2016.
- Also a concern to Berenberg is Barclays' U.S. unit which leaves it vulnerable to slowing growth here.
- "Barclays is one of our wild cards for 2015 as it has the potential to emerge as a long-term winner in the sector,” says Chappell. “Unfortunately, that change seems further away than we had hoped.
- Source: Bloomberg
- Previously: Barclays weakness could be buying opp - Accendo (April 29)
- Previously: Barclays puts more aside for forex fines (April 29)
Wed, Apr. 29, 3:44 AM
- Firm notes Barclays' (NYSE:BCS) otherwise strong Q1 was led by strong investment banking numbers. Says shares (£259.40) could rise above £300 this year.
- "In the near term provisions for another £800M will temper enthusiasm, but in doing so create buying opportunities."
- Previously: Barclays puts more aside for forex fines (Apr. 29)
- Related: Barclays Is The Stock I'm Putting Into The IRA (Feb. 15)
Wed, Apr. 29, 3:26 AM
- Barclays (NYSE:BCS) has set aside another £800M ($1.2B) to cover a potential settlement for alleged foreign exchange manipulation, bringing its total provision for resolving the scandal to £2.05B.
- The bank also reported a first-quarter statutory pretax profit of £1.3B (-26% Y/Y), and underlying pretax profit, which strips out the provision, of £1.85B (+9% Y/Y).
Fri, Apr. 24, 4:05 AM
- Barclays (NYSE:BCS) hopes to make "significant" progress this year in resolving a series of misconduct investigations, including the potential manipulation of forex trading markets.
- "I share your frustration as shareholders, and the frustration felt by my colleagues, that legacy matters like these continue to cast a shadow over our business," CEO Antony Jenkins said.
- Last year, Barclays set aside £2.8B ($4.2B) in litigation and conduct charges, including £1.25B related to foreign currency investigations.
- Previously: FT: Next mega forex settlement scheduled for mid-May (Apr. 21 2015)
- Previously: Barclays adds to litigation provisions as pre-tax profit rises (Mar. 03 2015)
- Previously: Barclays hopes to resolve forex probe in one deal (Feb. 27 2015)
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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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