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Pin to quick picksBarclays Share News (BARC)

Share Price Information for Barclays (BARC)

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Share Price: 217.20
Bid: 217.20
Ask: 217.30
Change: 2.65 (1.24%)
Spread: 0.10 (0.046%)
Open: 214.10
High: 218.00
Low: 213.75
Prev. Close: 214.55
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UPDATE 3-Banks shiver as UBS swallows $885 mln US fine

Fri, 26th Jul 2013 13:00

* UBS paying $415 mln to Fannie Mae; $470 mln to Freddie Mac

* Settlement raises concerns over exposure of other banks

* European banks could take $11 billion hit - Credit Suisse

* RBS shares down 3 percent on settlement fears

WASHINGTON/LONDON, July 26 (Reuters) - UBS willpay $885 million in a settlement with a U.S. regulator overallegations the Swiss bank misrepresented mortgage-backed bondsduring the housing bubble, paving the way for billions more tobe paid by other banks.

European and U.S. lenders such as Credit Suisse and Deutsche Bank have set aside money to cover thecost of any losses arising from the dispute with the FederalHousing Finance Agency but estimates vary widely.

Shares in Royal Bank of Scotland, which had risen by aquarter since July 3 having slumped following the ousting ofchief executive Stephen Hester in June, dropped over threepercent on Friday after the UBS settlement was revealed.

The FHFA said late on Thursday UBS will pay $415 million and$470 million respectively to government-sponsored housingenterprises Fannie Mae and Freddie Mac to resolve claims relatedto securities sold to the companies between 2004 and 2007.

UBS is just one of 18 banks the FHFA pursued in 2011 forallegedly misrepresenting the quality of the collateral backingsecurities during the run-up to the financial crisis.

The Swiss bank is the third to settle, after Citigroup and General Electric did so for undisclosed sums. UBSsaid on Monday that its second-quarter profit beat forecastseven after the settlement, which it said then had been agreed inprinciple without specifying the exact amount involved.

LITIGATION

The FHFA said it "remains committed to satisfactorilyresolving the remaining suits as well" and the deal may lay downa marker for how much it could cost rival banks.

Fears it will face a hefty settlement added to uncertaintyaround RBS, which is striving to attract a replacement forHester while the government conducts a review into whether itshould be broken up.

The bank has already paid out $612 million to settleseparate allegations that it manipulated benchmark interestrates and the government is anxious that the lender gets back ontrack so it can start to offload its 80 percent shareholding.

Ronnie Chopra, head of strategy at TradeNext, said fears RBScould face a multibillion-dollar payment in the U.S. "puts morenegativity on the bank and highlights concerns regarding thefinances of the behemoth".

Analysts at Credit Suisse earlier this year said Europeanbanks could take an $11 billion hit from a raft ofmortgage-related litigation costs in the United States.

They estimated RBS alone could face an FHFA litigation lossof $1.6 billion, Barclays a $1.1 billion loss and HSBC couldtake a $900 million loss.

But another London-based analyst, Joseph Dickerson atinvestment bank Jefferies, said he expected RBS's losses to be"sub-$1 billion".

Other banks have acknowledged they could incur losses fromthe suits but few have said how much it could cost.

Barclays said in its last annual report if it lost the casesagainst the FHFA and other civil actions it could incur a lossof up to the outstanding amount of the RMBS at the time ofjudgment and some additional interest and costs, less the marketvalue of the RMBS.

It said the outstanding amount was $2.7 billion at the endof 2012, and estimated the market value was $1.6 billion.

Deutsche Bank has set aside 2.4 billion euros for litigationcosts after topping that up in March by an additional 600million euros, mainly related to lawsuits over its role inselling bonds backed by U.S. sub-prime mortgages.

HSBC said in its annual report it was unable to estimatereliably the financial effect of any action or litigation, butany claims "could be significant."

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18 Feb 2024 23:26

Sunday newspaper round-up: Currys, Barclays, Homebuilders

(Sharecast News) - China's JD.com has been looking at a possible acquisition offer for Currys. Just the day before the electricals retailer had rebuffed an approach by private equity. Exploratory talks between Currys and JD had been held over the preceding weeks. Additional bidders may appear. It was understood that Currys had been contacted by multiple private equity firms on an informal basis over recent months after it was forced to cut its dividend payout. It was but the latest example of a British business being taken out and for some showed that British businesses were being chronically undervalued. - Sunday Telegraph

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16 Feb 2024 12:07

LONDON MARKET MIDDAY: Stocks up as UK retail sales soften GDP jitters

(Alliance News) - Stock prices in London were up strongly at midday on Friday, buoyed by UK retail sales data that came in far better than expected and soothed worries about the economy after numbers on Thursday showed it entered recession last year.

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16 Feb 2024 08:41

LONDON MARKET OPEN: Stocks climb amid UK retail sales surprise

(Alliance News) - Stock prices in London opened higher on Friday morning, after a sentiment-boosting UK retail sales reading which calmed some nerves about the economy.

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15 Feb 2024 11:59

REPEAT: Barclays bids to buy SocGen's UK private bank - Reuters

(Alliance News) - Barclays PLC is considering bidding to buy the UK private bank of France's Societe Generale SA, Reuters reported on Thursday.

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15 Feb 2024 10:37

PRESS: Barclays bids to buy SogGen's UK private bank - Reuters

(Alliance News) - Barclays PLC is considering bidding to buy the UK private bank of France's Societe Generale SA, Reuters reported on Thursday.

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15 Feb 2024 07:24

Barclays eyes SocGen's UK private bank - report

(Sharecast News) - Barclays is considering bidding for Societe Generale's UK private bank, it was reported on Thursday.

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13 Feb 2024 14:34

UK earnings, trading statements calendar - next 7 days

Wednesday 14 February 
Coca-Cola HBC AGFull Year Results
Dunelm PLCHalf Year Results
Pan African Resources PLCHalf Year Results
Severn Trent PLCTrading Statement
United Utilities Group PLCTrading Statement
Thursday 15 February 
Benchmark Holdings PLCQ1 Results
Centrica PLCFull Year Results
MJ Gleeson PLCHalf Year Results
Relx PLCFull Year Results
South32 LtdHalf Year Results
Friday 16 February 
NatWest Group PLCFull Year Results
Segro PLCFull Year Results
TBC Bank Group PLCFull Year Results
Monday 19 February 
Bank of Cyprus Holdings PLCFull Year Results
MoneySupermarket.com PLCFull Year Results
Transense Technologies PLCHalf Year Results
Wilmington PLCHalf Year Results
Tuesday 20 February 
Barclays PLCFull Year Results
BHP Group LtdHalf Year Results
Coca-Cola Europacific Partners PLCFull Year Results
Gran Tierra Energy IncFull Year Results
InterContinental Hotels Group PLCFull Year Results
Petra Diamonds LtdHalf Year Results
Springfield Properties PLCHalf Year Results
  
Comments and questions to newsroom@alliancenews.com
  
A full 21-day events calendar is provided each day with a subscription to Alliance News UK Professional.
  
Copyright 2024 Alliance News Ltd. All Rights Reserved.

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9 Feb 2024 17:02

LONDON MARKET CLOSE: FTSE 100 falls at end of tepid week

(Alliance News) - Stock prices in London closed lower on Friday, with the FTSE 100's losing streak extending to three days, as sentiment in Europe remains tetchy despite a largely stellar start to the day in New York.

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9 Feb 2024 15:15

London close: Stocks turn sour in afternoon trading

(Sharecast News) - London's markets turned lower on Friday afternoon, concluding a volatile week on a negative note.

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9 Feb 2024 12:46

Barclays pledges to stop directly financing new oil and gas projects

(Alliance News) - Barclays PLC has promised to stop directly financing energy clients' new oil and gas projects as part of updates to its climate change strategy.

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9 Feb 2024 11:44

LONDON MARKET MIDDAY: European markets quiet heading into afternoon

(Alliance News) - European stock markets were quiet heading into Friday afternoon, as investors eye the annual US consumer price index benchmarks revisions.

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9 Feb 2024 08:49

LONDON MARKET OPEN: Tesco bank sold to Barclays for GBP600 million

(Alliance News) - Stock prices in London lacked direction on Friday, after Barclays announced plans to buy the retail banking business of Tesco Bank.

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9 Feb 2024 08:11

Barclays adds scale, income and profits with Tesco Bank deal, says Shore Capital

(Sharecast News) - Shore Capital has reiterated a 'buy' recommendation on Barclays after its deal to takeover Tesco Personal Finance for £600m, saying that the stock should double from current levels.

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9 Feb 2024 07:59

TOP NEWS: Barclays buys Tesco Bank as supermarkets refocus on food

(Alliance News) - Barclays PLC and Tesco PLC on Friday announced an agreement for Barclays to buy the retail banking business of Tesco Bank, as the big UK supermarkets scale back their forays into financial services.

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9 Feb 2024 07:51

LONDON BRIEFING: Barclays buys Tesco's retail banking business

(Alliance News) - Stocks in London are called to open higher on Friday, closing off a busy corporate week.

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