Barclays Share Discussion Threads

[triktrak] 25/5/2015 14:49

How banks went from ‘too big to fail’ to ‘too big to nail’



.....The scandals that have been tarnishing the industry will inevitably rumble on for a considerable while. Whether any of this will result in senior banking executives being held accountable is highly doubtful. One of the surest indicators of this is to track bank share prices. In his 2012 book The Signal and the Noise, statistician Nate Silver wrote of the difficulty, when making predictions, of distinguishing the pieces of data which really mattered (the “signal”) from the welter of other information available (the “noise”). Well, amidst all the noise of the last couple of months, the signal is the fact that bank share prices scarcely budge when news of the latest scandal or fine emerges. Sometimes the share price will react modestly but generally it is no more than a minor blip, demonstrating that the market does not believe that serious long-term consequences are going to follow. Barclay’s share price increased by over 1 per cent when news of its record breaking fine broke.

The reason for this is that the perception by the markets of scandal in relation to big banks has long since shifted from that of an occasional acute condition to one which is chronic. Rate rigging, mis-selling, sanctions busting, tax evasion, money laundering and even criminal facilitation – these have become facts of life and are priced in. Sure, fines have to be paid. But in the absence of prosecutions – particularly of senior banking officers and directors – such penalties are now simply seen as part of the cost of being in the banking business....

[portside1] 25/5/2015 14:34

sill no action from the chairman . but listening to the lady on cnbc he is not that good he gets credit n the backs of others
and she worked at the same company in aussie

[davew28] 25/5/2015 13:44

fjgooner,
I thought you were out of these now.
What is your interest now, morbib curiosity?
From memory, a few months back you were castigating Johnwise and encouraging negative postings on his investments?
Dave

[fjgooner] 25/5/2015 12:55

So, in short, fines and litigation at vast cost are expected to continue for some time to come. Shareholders continue to receive stagnant dividend yields as provisions are continually required to be made.

Dread to think how much the civil lawsuits will cost and how long the issue will drag on, but when resolved we will have a bank with multiple divisions capable of boosting RoE back to above 12% as per AJ's stated target.

That is providing that the story Johnwise posted about rigged computer systems doesn't open yet another can of (very expensive and damaging) worms.

So when will be BARC's first "predominantly post provision year"? 2016? 2017? Anyone?

[jarrow3] 25/5/2015 11:28

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[smurfy2001] 25/5/2015 10:33

Traders Are Hinting Europe’s Bank Rally Is Just Getting Started

The shares have jumped 28 percent since a January low, but they’re still trading at a discount to their two-year average, making the industry among the cheapest in the region. The cost of options protecting against bank stock swings this month reached the lowest level in more than five years versus those on the Euro Stoxx 50 Index.

[diku] 24/5/2015 22:49

Bob the Diamond & Co laughing all the way to their bank/s!...

[isis] 24/5/2015 18:04

These would probably be over a fiver without all the Bank fines.

They let these practices go on for 30 years and then suddenly decided to punish them.

[astol] 24/5/2015 10:13

Massive bank fines

Following many months of investigations and negotiations, five major banks pleaded guilty on Wednesday to Justice Department charges of currency market manipulation. The guilty included Barclays PLC BCS, -1.35% UBS Group AG UBS, -1.23% Citigroup Inc. C, +0.24% J.P. Morgan Chase & Co. JPM, -0.27% and Royal Bank of Scotland PLC RBS, -1.61%

Bank of America Corp. BAC, +0.12% hadn’t faced criminal charges but did pay a fine $205 million to the Federal Reserve. The Fed said Bank of America “failed to detect and address conduct by traders who discussed the possibility of entering into similar agreements to manipulate prices.”

The fines paid to the Justice Department, the Fed and other regulators totaled $5.6 billion.

Rafferty Capital Markets analyst Richard Bove minced no words on Wednesday when bashing the Justice Department and Bank of America’s board of directors: “The Fed indicated that Bank of America had not done anything wrong but it had hired a trader who was considering doing something wrong. The bank gave away $205 million of stockholders cash for these bad thoughts but avoided a criminal change because the thoughts were not converted to action.”

Then, after Shares of Barclay’s rose over 3% on Wednesday, with RBS up 2% and UBS up nearly 4%, while shares of the three fined U.S. banks declined, Bove said on Thursday that the disparity in the price action “apparently221; reflected investors’ belief that “the foreign banks will now be free to grow without government intervention,” while the big U.S. banks won’t be allowed to grow.

[astol] 24/5/2015 10:08

neilrich- well at least Barclays provisioned for £2bn from the forex rigging fines and were fined £1.5bn so they have effectively £0.5bn towards the possible civil law suits.

[neilrich] 24/5/2015 06:37

Banks brace for more foreign exchange rigging pain as civil lawsuits come forth
Class-action cases expected to follow vast fines for manipulating currency benchmarks.

Analysts at JPMorgan last week predicted that Barclays will have to set aside another £900m related to the scandal, while RBS will take a new £700m hit.

[kenbachelor] 23/5/2015 14:18

The PRT charts are now back on line and they've been updated.

[druid2] 23/5/2015 13:19

Many thanks Ken. Hope that you and your family are well. Great to see some strength in the share price. Let's hope BARC continues to go up during 2015.

[kenbachelor] 23/5/2015 09:18

Druid - I've updated everything I can for you. The PRT charts are not available at the moment as they are updating their site, so I'll try to do those later.

[mbmiah] 22/5/2015 17:52

Anybody got a bolt gun?

[isis] 22/5/2015 16:17

They've been fined about £20billion and shareholders are worried about £32m???

Penny wise Pound stupid.

[portside1] 22/5/2015 15:31

Barclays should be renamed as directors cow full of milk for them

[portside1] 22/5/2015 15:29

High quality global journalism requires investment. Please share this article with others using the link below, do not cut & paste the article. See our Ts&Cs and Copyright Policy for more detail. Email [e-mail] to buy additional rights.


has paid its top managers almost £32m in shares from deferred bonus schemes, putting the bank in the crosshairs of critics of excessive pay even though the amount is a fifth below last year’s payout.

The biggest bonus was received by Skip McGee, the former Lehman Brothers executive who runs the US arm that Barclays has built around the acquisition of the failed US investment bank. He received 3.81m shares worth almost £8.9m.









More

On this story
Inside Business Barclays needs to consider break-up
Big banks put forex bonuses on hold
Barclays to shake up investment bank
In depth Bank bonuses

On this topic
City Insider Campbell and Sieghart — Vrumi with a view
Probe into $500tn rate swaps market
Lombard Barclays / Mike Coupe / Paul Taubman
Barclays turnround at a pivotal point

IN Banks
Good times fade away for forex traders
Banks probed over automated forex deals
Nationwide CEO to step down after 9 years
Piraeus Bank offloads Egyptian operation


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Eric Bommensath, the co-head of Barclays investment bank who has faced calls from shareholders to be replaced, received the second-highest amount with 3.72m shares worth £8.6m.

[portside1] 22/5/2015 15:18

cnbc why are companies paying out massive bonuses when they are failing and paying out big fines as for the companies needing top CEO AND CHAIRMAN IT IS RUBBISH

PAY THEM A SALARY AND TARGETS THAT REWARD SHARE HOLDERS THE OWNERS
BARCLAYS ONLY REWARDS DIRECTORS FOR FAILURE

[portside1] 22/5/2015 15:08

they said king was doing a great job at sbry he wrecked the company milked it dry

[smurfy2001] 22/5/2015 15:01

I have faith with the chairman, he made me a good return on Aviva.

[portside1] 22/5/2015 14:58

all bonuses must be stopped at the bank till all money paid in fines is
returned to the bank and holders the holders must not pay the fines and if the directors do not like it leave .
the bank of crooks run by crooks for crooks

the new chairman must make is mark we are still waiting and I think we have a long wait if what I read about him and listen to the lady on cnb
lets hope my views are wrong we have waited to long
charge the criminals at the bank

[davew28] 22/5/2015 14:45

Here's the link to the article portside mentioned above:

Jenkins is on borrowed time, hopefully.

"McFarlane cannot sit back much longer and watch the reputation of Barclays besmirched.

Nor can he ignore the failure of the bank’s chief executive to curb the rotten culture at the core of the bank."