Yes, I think the way forward, everything points to a separate Investment Bank and would make a lot of sense. As you say any hint of a RI would be fatal to the share price, think you can add to that the scrapping of the dividend, which will have an equally bad effect.
Going back to my investment bank tie up with Deutsche Bank and Barclays. Jeffrey Urwin head of Deutsche corporate and investment bank and our Jes, former team mates at JP Morgan. JEM.
LONDON, Feb 5 (Reuters) - Britain has hired Barclays Plc (LSE: BARC.L - news) to manage a planned sale of shares in Lloyds Banking (Xetra: 871784 - news) Group to the general public, two sources with direct knowledge of the matter said on Friday. Britain, which rescued Lloyds during the 2007-09 financial crisis with a 20.5 billion pound ($29.7 billion) bailout, has been trimming its 43 percent stake in Britain's biggest mortgage lender for more than two years. Finance minister George Osborne said last week the sale of at least 2 billion pounds of shares in Lloyds to retail investors would be postponed due to turmoil in global financial markets. It (Other OTC: ITGL - news) had originally been timed for spring. The government, which now owns less than 10 percent of Lloyds, has recovered some 16 billion pounds of taxpayer funds to date from share sales. UK Financial Instruments is the agency in charge of managing Britain's stakes in state-supported lenders Lloyds and Royal Bank of Scotland. Barclays and UKFI declined to comment. In December 2014, UKFI appointed Morgan Stanley (Xetra: 885836 - news) to run a "dribble-out" trading plan to gradually sell down the Lloyds stake to pension funds and other institutional investors. News (Other OTC: NWSAL - news) of Barclays appointment was first reported by Bloomberg. ($1 = 0.6914 pounds) (Reporting by Richa Naidu; editing by David Clarke)Sale
".......the bank's plan to cut down the worst-performing parts of the investment bank with the aim of creating a smaller, more profitable operation "is possibly one of the worst strategies ever in the history of banking”
I have been saying for some time that in my view, the only solution would be to seperate the IB out and allow it to grow itself independantly whilst retaining an interest in it. This may be , why jes is apparently proposing a Holding company type structure similar to IAG ? Of course we will have to wait until Moarch to find out but I very much hope he doesn't even whisper about a potential RI ! It would be a disaster IMO. GLA
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