Broker snap: Barclays still at the top of Investec's list

In spite of the regulatory troubles that continue to hound lender Barclays, Investec says that the stock remains its favourite in the UK banking sector.The bank's former Chief Operating Officer Jerry del Missier told the Treasury Select Committee that, acting on a phone call from ex-boss Bob Diamond, he passed on "an instruction from the Bank of England" (BoE) to lower its LIBOR submissions.Meanwhile, BoE Deputy Governor Paul Tucker said that BoE officials haven't had time to keep records over the past five years."Regulators' testimonies to the Treasury Select Committee remain compulsive viewing (for some), but are essentially backward-looking and substantially divorced from the Barclays investment case today. Indeed, given the level of regulatory criticism, it is somewhat ironic that Barclays may yet be the key player under the BoE's Funding for Lending Scheme," said Investec analyst Ian Gordon.The broker believes that Barclays should benefit in the coming months (and years) as evidence of other banks' involvement in attempted LIBOR manipulation is disclosed. The Financial Services Authority is currently investigating seven banks, in addition to US regulatory enquiries.With Barclays now trading at just 0.4 times tangible net asset value and 3.8 times 2014 earnings ahead of a "low risk reporting season," the broker said that the bank has become its "top pick" in the sector.By the close of trade on Tuesday, shares were trading 0.82% higher at 159p.BC