continued ........ In a first step, the bank will merge responsibilities for global equities and credit trading under the helm of Joe Corcoran, previously head of equities, according to an internal memorandum sent out last Thursday and seen by the Financial Times. The reshuffle presages cuts across a range of trading units by bringing them closer together and creating shared infrastructures. “The intent is to drive efficiencies and synergies between the businesses,” one person close to the decision said. “You have to break down the silos.” Mr Jenkins has come under pressure to fix the investment bank after he angered investors with a rise in staff bonuses despite falling profits. The unit failed to meet its cost of capital last year with a return on equity of 8.2 per cent. At a shareholder meeting this week, Mr Jenkins faces the prospect of a protest vote over the bank’s bonus increase last year. Additional reporting by Xan Rice and Neil Hume in London http://www.ft.com/cms/s/0/5761ec06-c707-11e3-aa73-00144feabdc0.html?siteedition=uk#axzz2zSVuvdk8
BARC news from the FT
This is a massive recovery stock IMHO Barclays to wind down commodities trading Barclays, one of the world’s biggest commodities traders, is planning to exit large parts of its metals, agricultural and energy business in a move expected to be announced this week. The shake-up comes as commodity trading suffers a sharp slide in revenues and attracts greater scrutiny from regulators, which has already led to the withdrawal of several big banks from the area. Chief executive Antony Jenkins is preparing a strategic update for investors on May 8 and is expected to slash several thousand jobs by cutting Barclays’ exposure to areas that do not generate returns above their cost of capital. These are likely to be moved into an internal “bad bank” and either sold or closed down. But the retreat from parts of its commodities business is due to be announced on Tuesday. Barclays declined to comment. Precious metals trading is likely to move into the bank’s foreign exchange trading business. There are expected to be heavy job cuts among the 160 staff in its global commodities trading, sales and research operations, many of them in London. Barclays is one of the top five banks in commodities – which together controlled about 70 per cent of the commodities trading pot last year. But several are shrinking or disposing of these businesses, including Morgan Stanley, Deutsche Bank, UBS and Royal Bank of Scotland. The retreat is being driven by tighter regulation, fresh capital constraints and lower profitability due to stable prices for oil and other commodities. Coalition, a consultancy, estimates the revenues of the top 10 banks in commodities fell last year to $4.5bn from a record $14.1bn in 2008. In the most prominent example to date, Mercuria, a Geneva-based trading house founded a decade ago by two former Goldman Sachs traders, agreed to buy JPMorgan Chase’s physical commodities business for $3.5bn. Only Goldman Sachs, one of the first banks to enter commodities markets 30 years ago, seems to be strategically committed to the sector, this year deeming it “too important to clients to exit”. Regulators, including the US Federal Reserve, are reviewing whether to curb banks’ commodities trading operations after they were accused of manipulating markets for electricity, aluminium and other materials for their own profit. Barclays closed its US and European power trading operations in February after it was fined a record $470m for allegedly manipulating power prices by the US Federal Energy Regulatory Commission. Barclays has refused to pay the fine, shifting the dispute to a federal court. Separately, Barclays is combining its equities and bond trading units, in a radical departure from the traditional way investment banks organise trading businesses. In a first step, the bank will merge responsibilities for global equities and credit trading under the
RE: BARC got legs at last
Long termers just top up on the lows This is a bloody cheap FTSE100 stock at these prices massively cheap shares IMHO ride the short term storm and see your little Acorns grow :-) Keep the Faith and have a lovely Easter Holiday
BARC got legs at last
Barclays rises as traders look forward to strategic update The share price of Barclays rose strongly on Thursday amid speculation the bank could announce thousands of further job cuts in its investment banking division as part of a corporate shake-up. Barclays released a statement today which announced that it would update shareholders next month on its strategy "to deliver improved and sustainable returns and growth for shareholders". The bank said this would include a "positioning" of the investment bank.
"Happy Easter" :)
To All None Muppets
Speculation circulates until, 24th April AGM, 1st quarter results May 6th, update May 8th ! IMHO Markets will react positively once the news has been released about the restructuring of the Investment bank and other core banking divisions. Institutional investors will buy into positive cost cutting / outlook about the new direction in Investment banking, remember just not Barclays finding difficulty at the moment in the post credit crisis, all of the IB arms like Deutsche for example are suffering with new regulation that makes it harder and harder to do business here and abroad................. Market sentiment will change sooner now on the banks new positive outlook...............Then the SP will reflect the true book value, in the mean time lack of news coming out from the bank is driving the SP Up and Down. Institutional investors are sitting on the fence still with this stock, when it goes North it'll spike fast.......... The board will keep their promises to shareholders,(Barclays is very profitable even now) once the dividend rises as promised this share will rise fast too........ Just a matter of time... Bear Market possibly approaching with geopolitical events don't help............... .. Most news reported recently is very positive for Barclays... .......Good luck all Barc holders / traders, nice to read some real descent posters views, muppets still around seeking attention by writing nonsense of course !! Good to see a decent rise today............I'm well happy with my stake in the bank, just a matter of time before the Blue Eagle does us all proud again...................... :)
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