Investec 'agrees with logic' of Barclays fine deferral

Investec maintained its 'buy' recommendation on Barclays after agreeing with the bank's logic in deciding "not to play" in Wednesday's otherwise predictable "round one" of regulatory settlements for forex rigging. After the UK's Financial Conduct Authority (FCA) and the US's Commodity Futures Trading Commission (CFTC) imposed fines totalling £2bn on five banks, Barclays held off from agreeing to any amount yet. It is seeking a co-ordinated settlement to include other agencies such as the US Department of Justice, Securities Exchange Commission, New York Department of Financial Services and the Swiss regulator.RBS warned of potentially "significant" further settlements with these other agencies.Investec said some comfort was offered by Barclays' reference that its consideration would be on "closely similar terms" to those announced so far, and added that the bank had not provided any clarity as to whether it may have forgone the standard 30% discount for early-stage settlement."Frankly, we agree with Barclays' logic," analysts wrote."The announced settlements are broadly as leaked in the press, and as provided for at [the third-quarter stage], but provide no greater visibility on the timing and quantum of overall global settlements for the 'FX five'."We continue to assume, although it is not confirmed, that Barclays' £0.5bn provision primarily attaches to anticipated FCA/CFTC settlements."The broker said it believed "it makes more sense" to seek a co-ordinated global settlement rather than be picked off by the regulators one by one and reiterated its 295p target price for the stock.