Dark Pool Trading down 37% last week at Barclays. As they were first to Settle their LIBOR issues, and quite cheaply compared to many others, I think the U.S. authorities may go for them. New Yorks top lawyer has filed Fraud charges The legal fees alone must be astronomical. Has their reputation ever been worse than in the past 3/4 years??
Good to see Golmans results higher than expected. Barclays will probably also be doing better in the US than many think. I still think we are undervalued here and a few fines here and there will help focus things going forward. It was dramatic what BNP were up to Nd I don't see any similarities here. GLA
The Us authorities are imposing the fine proportionally to the offence.. I don't believe the dark pool scandal is that serious, it's like the Police, when you catch a thief you will bluff about it, doesn't mean that the thief will go to jail for a long time. The US authorities need to show that they are doing their job.
Now regarding the dark pool, it didn't cause a crisis of any kind, didn't go against foreign policy of the States, did not involve money laundering, so the settlement will be proportionate to the offence..
My thinking is that although the SP acts upon the news when first published, with in a week or so its is usually back to its normal levels. The authorities (particually in USA) are now flexing their Muscles and issuing larger fines (eg JPM, Soc Gen , Citigroup) than ever before. any large fine will have an impact on Profit, maybe Dividends ? If 2 fines come along in the same year, will they need another Rights Issue ???
F430.... Good to see you return to posting, one of the few who make sensible remarks based on solid knowledge. This board is supposed to be about sharing info and helping each other. Unfortunately there are those who fall short of such good intentions.
As for Barclays, I don't see any good news coming that would stir the sp upwards. Sure it is cheap and may well recover to 300 but I think we'd have a long wait. The resultant fines could damage profits for a long time to come.
I already doubled up before to reduce my average but scandal after scandal makes me wonder if I should top up yet again?
.............pointless discussion IMHO. Sentiment, news (bad) & rumour driving this sp. The actual amount of any fine will have little effect on sp either way. The damage (the latest damage that is) has been done. Bad news (or rumours of) drive the sp fast. Good news (is there any) has a much slower effect - as people merely think 'that's fine but there'll be something bad along in a moment'. This share will struggle to break free from negativity for a long time - in much the same way as a depressed person can't just 'snap out of it' or in the way that it is very hard for someone who has repeatedly broken you trust to ever win it back.. Even if we see a 'recovery' in coming months to, say 300p although that would excite many and there'd be cries of 'here we go' and 'she's flying', that would in reality still be pretty grim.
Still a traders share or a very long term PUNT (and, unless you've got a crystal ball then that's all it'll be).
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