May 15, 2014, 12:53 PM
- Redburn Partners upgrades Barclays (BCS -1%) to Buy.
- Boenning & Scattergood upgrades Beneficial Mutual Bancorp (BNCL +0.1%) to Outperform with $15 PT.
- Fidelity Southern (LION -2.5%) is upgraded to Outperform with $16 PT by KBW.
- Ladenburg Thalmann upgrades Spirit Realty Capital (SRC +1.3%) to Buy alongside its downgrade of Realty Income.
- Morgan Stanley pulls its Buy rating on Columbia Property Trust (CXP -7%).
- Fifth Street Finance (FSC +0.3%) is boosted to a Buy at Gilford Securities
May 15, 2014, 7:36 AM
- Ahead of the major shakeup in Barclays' (BCS) investment bank comes another high-profile departure, with the NYT reporting Asia investment bank chief Matthew Ginsburg as stepping down.
- Ginsburg - who joined Barclays from a similar role at Morgan Stanley in 2009 - is reportedly looking at other senior roles within the bank. Andrew Jones co-CEO for Asia-Pacific at Barclays will take Ginsburg's slot on an interim basis.
- Previously: The Street still loves a good chainsaw; Barclays soars
May 12, 2014, 1:27 PM
- FBR upgrades Pac West Bancorp (PACW +3.7%) and TCF Financial (TCB +3.1%) to Outperfom and sets price targets of $47 and $18 respectively.
- KBW upgrades First Interstate Bancsystem (FIBK +1.7%) to Outperform with $32 PT.
- Double upgrades are in order for Essent Group (ESNT +2.5%), from Compass Point and KBW, after last week's Q1 earnings.
- Stifel Nicolaus upgrades Cousins Properties (CUZ +1.4%) to Buy with $13PT after the company beats estimates by $0.02.
- Guggenheim upgrades Travelers Companies (TRV +1.1%) to Buy and sets a $117 PT.
- Responding to weakish earnings last week from Barclays (BCS -1.5%) coupled with the plan for an overhaul at the investment bank, RBC Capital and BNP Paribas downgraded the stock to Sector Perform.
May 9, 2014, 12:53 PM
- Goldman Sachs (GS -0.2%), Barclays (BCS -1%), and Credit Suisse (CS -1.2%) are among the banks NY Attorney General Schneidermann has requested information from about their use of dark pools, reports Dow Jones.
- Dark pools are systems set up by the banks to allow clients to trade large blocks of stock outside of the major exchanges.
- Earlier this year, Goldman sent out checks to clients after discovering errors in trades in its Sigma X dark pool - the world's largest - from back in 2011. It was also reported that Goldman was considering selling Sigma X, a move management has denied.
- Previously: Goldman considers shuttering dark pool
May 8, 2014, 10:44 AM
- Plans to gut its investment bank (7K job cuts), park £400B of assets in a "bad bank", and cut another 12K positions from the rest of the company light a fire under Barclays (BCS +7.8%). The lender's current workforce is 139.6K strong, and the 19K in cuts announced today stands against a plan of just 12K expected earlier this year.
- Barclays' reshaped investment bank will concentrate on the core markets of the U.S. and the U.K., and the top 1K clients who generated more than 75% of revenues last year. The investment bank will now account for 30% or less of risk-weighted assets, down from 50% now.
- Talking a different line than JPMorgan's (JPM +0.4%) Jamie Dimon, Barclays boss Antony Jenkins says the evaporation of trading revenue is indeed secular, not cyclical.
- Previously: Cyclical or secular? JPMorgan warns again on trading business
- Previously: Barclays plans to axe 19,000 jobs
May 8, 2014, 9:16 AM
May 8, 2014, 3:27 AM
- Barclays (BCS) intends to slash 19,000 jobs over the next three years, including 7,000 at its investment bank, where operating profit halved in Q1.
- Barclays will cut 14,000 positions this year, above an expected 12,000-14,000.
- The U.K. company also plans to create a "bad bank" that will incorporate £115B ($195B) worth of risk-weighted assets from the investment bank, as well as the firm's retail banking operations in Italy, France, Spain and Portugal. The aim is for the investment bank to account for no more than 30% of the company's risk-weighted assets vs 50% now.
- Barclays will give greater focus to its retail activities in Britain, its Barclaycard credit card division, and its African business.
- The company will book £800M in costs as part of the overhaul, adding to £2.7B that was announced in February 2013.
- However, within two years, Barclays aims to increase its dividend payout to up to 50% of adjusted earnings vs current guidance of 40%.
- Shares are +3.4% in London. (PR)
May 6, 2014, 11:12 AM
May 6, 2014, 7:09 AM
- Behind the decline in income at Barclays (BCS) in Q1 was a 49% dive in income at the investment bank as business evaporates in fixed income, currencies, and commodities. Traditionally, the largest source of revenue for the investment bank, FICC income fell 41% to £1.2B.
- "A lot weaker than expected," says Shore Capital's Gary Greenwood of the FICC number. "The key questions are: What are they doing with their investment-banking business and how are they going to stem these declines?”
- Later this week, CEO Antony Jenkins will present details of an overhaul of the investment bank. Ahead of the presentation has been a rash of top-level management exits.
- "We are obviously going through a number of changes as part of our strategic review and that may or may not have prompted some people to move on,” says Finance Director Tushar Morzaria on a reporter conference call. He notes the bank's difficulties in FICC have continued in Q2.
- Shares -3.1% premarket
- Previously: Barclays reports Q1 results
- Previously: More high-level departures at Barclays
May 6, 2014, 6:47 AM
May 5, 2014, 5:30 PM
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May 5, 2014, 7:09 AM
- The news continues to fly fast on Barclays (BCS) amid the strategic review of its investment bank which is to be unveiled on Thursday. The weekend's news:
- Investment banking chief Ros Stephenson is joining UBS, where he'll be global chairman of corporate client solutions.
- The bank's head of M&A - Paul Parker - is expected to quit ahead of Thursday's presentation, bringing to four the number of high-level bankers exiting ahead of the big day. A source, reports the FT, says Parker - a former Lehman banker - is being eased out as part of the management changes.
- The bank may put its retail operations in continental Europe up for sale, reports The Telegraph.
May 2, 2014, 3:42 AM
- Goldman Sachs (GS) and Morgan Stanley (MS) are on a Fed list of 15 U.S. and foreign financial firms that "may pose elevated risks to U.S. financial stability" and so will receive extra supervision by a cross-disciplinary special unit called the Large Institution Supervision Coordinating Committee.
- Other firms on the list include JPMorgan (JPM), Bank of America (BAC), AIG (AIG), GE (GE), Citigroup (C), Wells Fargo (WFC), State Street (STT), Prudential Financial (PRU), Barclays (BCS), Credit Suisse (CS), Deutsche Bank (DB) and UBS (UBS).
- As a major clearing and custody bank, Bank of New York Mellon (BK), will also receive the extra attention.
May 1, 2014, 10:43 AM
- Flushing Financial (FFIC +1.8%) is upgraded to Buy at Guggenheim.
- BofA Merrill Lynch upgrades National Bank of Greece (NBG +1.3%) to Neutral.
- Barclays (BCS +1.3%) is upgraded to Buy amid its plan to set up a “bad bank”.
- HSBC upgrades ING Groep (ING +0.1%) to Neutral.
- Morgan Stanley upgrades Synovus Financial (SNV +0.5%) to Equal Weight with a $3.30 PT.
- Provident Financial Holdings (PROV +0.5%) is upgraded to Buy at Sandler O'Neill after posting Q1 results.
Apr. 30, 2014, 7:10 AM
- Continuing restructuring moves, Barclays (BCS) plans to set up a bad bank to hold units designated as part of its "exit quadrant," reports Bloomberg, and has chosen co-chief of the corporate and investment bank Eric Bommensath lead the unit. Currently serving alongside Bommensath as co-head of the investment bank, Eric King will take over as sole leader. Among the businesses in the bad bank will be the commodities division.
- Noting a number lenders have set up these bad banks in the hopes investors will look past non-core assets, analyst Simon Maughan, reminds most "are not fooled by this."
- Barclays management - recently rewarded with large bonuses amid sliding profits - is under pressure to do something to earn its keep, and is set to unveil a strategy for the investment bank on May 8. Yesterday, it announced its U.S. chief Skip McGee was stepping down, effective today.
Apr. 29, 2014, 8:42 AM
- Currently CEO of Barclays Americas (BCS) Skip McGee is stepping down tomorrow. His exit comes as the bank - responding to new regulations - sets plans to merge all of its U.S. business units into a new holding company over the next two years.
- Currently Global Head of Client Capital Management, Joe Gold has been appointed to a restructured role as CEO of the Americas, where he'll be reporting to co-CEOs of the corporate and investment bank Tom King and Eric Bommensath.
- McGee was one of the Barclays execs who raked in those big 2013 bonuses which so upset shareholders because they came as profits fell. The board's reason for the bonuses: Employee retention.
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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