Wed, Aug. 26, 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.
Tue, Aug. 25, 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.”
Wed, Jul. 8, 8:40 AM
- Unveiling the summer budget, U.K. Chancellor Osborne says the government will gradually phase out the bank levy over the next six years, replacing it with a new 8% surcharge on profits. The difference? The new charge applies only to U.K. assets, while the bank levy applied to global balance sheets.
- Osborne may have made the change in response to threats from banks to leave the U.K. because of the levy (which Osborne increased 50% in the last budget).
- The FTSE 350 banking index is higher by 1.6% following the news. Watching with interest: HSBC, RBS, Barclays (NYSE:BCS), Lloyds (NYSE:LYG), Standard Chartered (OTCPK:SCBFF).
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.
Fri, May 8, 9:16 AM| 4 Comments
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, Jan. 20, 9:16 AM
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
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. 9, 2014, 7:30 AM
Sep. 8, 2014, 7:59 AM
- "A wall of money has gone out of the banks and into fines and redress," says KPMG's U.K. head of banking Richard McCarthy. "Hopefully the most egregious things have come out and hopefully the banks will be able to move forward."
- Over the last five years, according to KPMG, the U.K.'s largest banks - BCS, RBS, HSBC, LYG, OTCPK:SCBFF - have cut consumer and business lending by $595B, or 14%.
- "There is light at the end of the tunnel," says McCarthy, with the report noting redress costs and fines fell 44% to £2.4B in 2014's first six months from a year ago.
- Meanwhile, the banks are sharply lower premarket over Scottish independence jitters. BCS -3.5%, RBS -4.1%, LYG -4.9%, HSBC -2%.
- Previously: Cable tumbles over Scotland referendum
Jul. 30, 2014, 7:18 AM
- Barclays (NYSE:BCS) Q2 net income of £161M was ahead of expectations and compared to last year's Q2 loss of £168M.
- Amid a restructuring plan which includes the slashing of 19K jobs over the next three years, management - on the earnings call - said about 5K have been eliminated so far this year and headcount is at its lowest since 2007.
- The bank also set aside another £900M to compensate clients for improper sales of payment protection insurance. Thus far, Barclays has paid out £3.56B in claims.
- Full report
- Shares +4.2% premarket
Jul. 25, 2014, 8:03 AM
Jul. 10, 2014, 9:44 AM
- When the going gets tough, the tough suspend trading. Portugal has halted trade in Banco Espirito Santo with the stock off 17.2% on the session and 54% over the last month. At issue are financial troubles for the bank's privately-owned holding company, Espirito Santo International. Its accounts are currently under review by an external auditor who has identified irregularities and concluded the company "is in serious financial condition."
- Santander (SAN -5.8%), UBS (UBS -1.8%), Deutsche Bank (DB -3.1%), Bank of Ireland (IRE -5.6%), Credit Suisse (CS -2.8%), ING (ING -3.2%), BBVA (BBVA -3.1%). U.K. banks: Barclays (BCS -3.8%), RBS (RBS -1.9%), HSBC (HSBC -1.9%), Lloyds (LYG -2%).
- European financial sector ETF: EUFN -2.4%.
Jun. 26, 2014, 1:29 PM
- Broker-dealers including Deutsche Bank, RBC, and ITG have removed connections to dark pool Barclays LX from their routing systems, reports the WSJ, in wake of a fraud lawsuit filed by the state of New York.
- "We have had a lot of requests to turn them off," says David Mechner, CEO of Pragma Securities.
- Barclays (BCS -6.1%) is accused of lying to customers about how it favors high-frequency traders in its dark pool, and email excerpts in the suit show bank executives allegedly working to change reports and client communications to mislead them about the operation of the dark pool.
- Previously: New York sues Barclays for fraud over dark pool
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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