(Adds costs expected to rise)
By Steve Slater
LONDON, July 6 (Reuters) - British bank Barclays Plc said it has spent more than $150 million to develop aresolution plan for its U.S. operations that would allow it tobe wound down if it hits trouble, and warned of further extracompliance costs ahead.
In a submission to the U.S. Federal Reserve outlining plansfor its so-called "living will" released on Monday, Barclayssaid it expects to incur further costs from the need to set upan intermediate holding company for its U.S. business by July2016.
Those requirements, in particular a need to meet U.S.leverage rules, "are likely to increase the operating costs andcapital requirements and/or require changes to the business mixof Barclays' U.S. operations," the bank said.
It said implementation of the 'Volcker Rule', which bansproprietary trading, will also require it to develop anextensive compliance and monitoring programme inside and outsidethe United States, and "it is therefore expected that compliancecosts will increase".
Barclays said it plans to shrink the size of its U.S.broker-deal unit Barclays Capital Inc. to $185-215 billion byJuly 2016, from $248 billion at the end of 2014 and as much as$521 billion in 2010.
"Barclays has a global recovery planning process in placethat includes a range of feasible options available to managethe viability of the group during stressed conditions," it saidin its submission.
Barclays said it had addressed shortcomings identified byU.S. regulators in its 2013 'living will' submission. (Editing by Carmel Crimmins)
Barclays (BARC)
