Barclays Share Discussion Threads

[jon827] 12/5/2010 18:07

grahamite2 this could be the reason RBS and Lloyds fell off more today, they could be forced to make more bad loans

"this will include consideration of both a major loan guarantee scheme and the use of net lending targets for the nationalised banks."

[cat100] 12/5/2010 18:06

the UK is a ConDemNation

[isis] 12/5/2010 18:05

One thing they seem to have blatantly missed is that it was Politicians on both sides of the Pond that caused the crisis in the first place!

[jon827] 12/5/2010 18:01

4. Banking Reform
The parties agree that reform to the banking system is essential to avoid a repeat of Labour's financial crisis, to promote a competitive economy, to sustain the recovery and to protect and sustain jobs.

We agree that a banking levy will be introduced. We will seek a detailed agreement on implementation.

We agree to bring forward detailed proposals for robust action to tackle unacceptable bonuses in the financial services sector; in developing these proposals we will ensure they are effective in reducing risk.

We agree to bring forward detailed proposals to foster diversity, promote mutuals and create a more competitive banking industry.

We agree that ensuring the flow of credit to viable SMEs [small and medium enterprises] is essential for supporting growth and should be a core priority for a new government, and we will work together to develop effective proposals to do so. This will include consideration of both a major loan guarantee scheme and the use of net lending targets for the nationalised banks.
Conservative-Liberal Democrat coalition deal: full text

The parties wish to reduce systemic risk in the banking system and will establish an independent commission to investigate the complex issue of separating retail and investment banking in a sustainable way; while recognising that this would take time to get right, the commission will be given an initial time frame of one year to report.

The parties agree that the regulatory system needs reform to avoid a repeat of Labour's financial crisis. We agree to bring forward proposals to give the Bank of England control of macro-prudential regulation and oversight of micro-prudential regulation.

The parties also agree to rule out joining the European single currency during the duration of this agreement.

[jon827] 12/5/2010 17:55

Cable has been saying he will clamp down on bonuses as well gbh

Among the items included under banking reform in the document published by the new coalition government today are:
• a banking levy (no further detail supplied).
• "Robust action to tackle unacceptable bonuses" (no further detail supplied).
• Fostering the mutual sector and prompting competition among the banks.
• Getting a flow of credit to the small business sector and a major loan guarantee scheme

[gbh2] 12/5/2010 17:38

"Change is coming"

That may be so but my guess is that it'll not affect the greedy sods in the Boardrooms or those in government so there'll always be a way of making easy money for those that already have a Bob or two!!!

[jon827] 12/5/2010 17:34

Yer your right ML I would do better if I pressed the buy button more often. I have to stick to my views thou and I feel banks will not be allowed to continue as they are. With unemployment rising and austerity measures coming in the future it should see more headwinds for the retail side of Barclays but as we have seen in the results the investment side offsets this. But how much longer will the central banks keep pumping liquidity in allowing them to borrow at 0% and play the global casino instead of lending into the economy. Change is coming

Maybe one day I will grow up as well :-)

[manuel labour] 12/5/2010 17:16

British Gas no longer dig up the streets and send you erroneous bills, they are strictly strategic now. (BG.)

same example for banks if it comes to it.

good chance to sell off some unprofitable divisions.

Persojally I do not think it will come to pass althouhg some regulation is inevitable and not totally unwelcome.

They will see that they need functional full service banks.

[isis] 12/5/2010 16:21

The Investment Banks and Retail Banks were all split before the mid-80's when we had big bang and you knew where you were.
It seems the merger of the two and the repeal of the Glas Stegal Act led partially to the problems in the US and the UK.
They will basically be returning to the old days - no big deal really.

[grahamite2] 12/5/2010 16:19

I suspect that if banks are split between a retail banking operation and a more speculative business, holders will not lose out at all. Consider how oddly low P/E ratios always were for years before the crash - there were always reservations. That would disappear on a split. There would be a market for X Banking plc, among those wanting something close to a corporate bond, and certainly a market for X Trading plc for those wanting something more exciting.

As to the retail parts being oppressed by forced lending, I am quite sure that is rhetoric for public consumption. The directors will remind the politicians that there is a difference between lending and giving money away; remind them that in hard times some companies will go to the wall; and point out that before going bust those companies might make loan applications to provide the cash which is not being generated by trading, and these are the loans being rejected.

[manuel labour] 12/5/2010 15:58

Jon,

Noticed your comments are always to one perspective despite drastically changing circumstances for Barc to operate in.

It would seem you are letting your investments guide your observations.

Perhaps you should try the opposite.

I have been in and out of this several times lately and I expect to continue to enjoy the profit from the volatility.


I think the government will only be able to kick around the banks which they actually own.

And that, of course, will screw up their own investments in the sector.

Golden eggs and geese.

[grahamite2] 12/5/2010 15:49

Interesting divergence today between the state-owned banks and the rest, especially towards the close.

[smurfy2001] 12/5/2010 15:44

ye of little faith....

Hope you closed your short.

[jon827] 12/5/2010 15:40

Minor miracle this finished blue today, I think it was only down to Mervyn King saying more QE was possible that turned it around midday. As for the French....

[dope007] 12/5/2010 15:07

Sour grapes from a French Baguette who forgets we help via the IMF as do the other non EU countires in Europe he didn't mouth off about.

[cat100] 12/5/2010 15:05

Backlash over UK stance on euro bail-out
By Ben Hall in Paris, Quentin Peel in Berlin and George Parker in London
Published: May 11 2010 14:12 | Last updated: May 11 2010 20:54
There were signs of a backlash on Tuesday against Britain for refusing to take part in the eurozone's €750bn rescue plan with a senior French policymaker suggesting Europe would think hard about coming to the UK's help in a sterling crisis.

Jean-Pierre Jouyet, the head of the AMF, the French markets regulator, said sterling was bound to come under pressure on the markets after last week's inconclusive general election.

EDITOR'S CHOICE
Paris trumps Berlin at EU table - May-11

Lex: The eurozone - May-11

QE spectre looms as ECB tackles crisis - May-11

More bullets to dodge on the road from ruin - May-10

In depth: Eurozone bail-out - May-10

The EU rescue plan explained - May-10

Mr Jouyet, a former Europe minister who is close to President Nicolas Sarkozy, indicated that Britain could expect no guaranteed assistance from the eurozone.

"The British are most definitely going to be targeted given the political difficulties they have," he told Europe1 radio.

Poland and Sweden said they would contribute to the €440bn facility of eurozone government-backed loans. Britain refused, although it did give the go-ahead for a €60bn extension of the European Union's existing balance-of-payments facility to members of the eurozone.

During the finance ministers meeting on Sunday, Alistair Darling, UK chancellor of the exchequer, insisted on financial and legal guarantees that Britain would not become indirectly liable for eurozone debt defaults.

There was criticism of the UK government's negotiating position in Brussels, although this came from the German press rather than any public statement from the government. The Süddeutsche Zeitung newspaper pointed to a "crack in the sign of strong unity in Brussels as, with astonishing insensitivity for the dramatic situation, Britain coolly declared that the crisis was a problem for the eurozone and not for London – as if the crisis would make a point of avoiding the [British] Isles."

In the wake of the eurozone rescue deal, there is a view in government circles that speculators might turn their attentions to sterling, and a certain schadenfreude has arisen at the prospect.

"The pound will be next," said one official in Berlin.

Anders Borg, Sweden's finance minister, said on Monday it was "completely unrealistic" of Britain to think it should not participate in the loan guarantee scheme for eurozone countries given the fact that "London is Europe's financial centre".

The Elysée palace said Mr Jouyet was speaking in a personal capacity, and his views were not shared by the French government.

But Charles Grant, director of the Centre for European Reform, said there was increasing anti-British feeling across the EU, fuelled by the belief that Britain had allowed its currency to depreciate to gain a competitive advantage.

"People are fed up with the British; we are deeply unpopular," Mr Grant said, warning that it would not be easy for the UK to find allies to help it on issues such as trying to revise an EU directive on hedge funds.

"Nobody will owe us any favours," he said.

Mr Jouyet added there was now a three-speed Europe: the eurozone; Poland, Sweden and other countries sympathetic to the euro; and Britain.

[lol short killer] 12/5/2010 15:00

yes, what's a new situation after 1 year, nobody knows....


lol

[smurfy2001] 12/5/2010 14:58

The review will take a year apparently. Nothing will get broken up any time soon!!

[isis] 12/5/2010 14:42

The Chandeliers.

[frequentbuyer] 12/5/2010 14:41

If they get broken up current shareholders will surely get a bit of each!

[dope007] 12/5/2010 14:38

When they get broke up which will be the best bit to own?

[leopold555] 12/5/2010 14:33

luvverly jubberly

[purple sound] 12/5/2010 14:29

Post of the Day.
Well done Wenny.

Wenlynn - 12 May'10 - 09:00 - 56544 of 56586
FTSE will end 100 points up today.