Comments on: Barclays’ Diamond choice spices up strategy debate http://blogs.reuters.com/breakingviews/2010/09/07/barclays-diamond-choice-spices-up-strategy-debate/ Mon, 26 Sep 2016 03:26:00 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: aaa_123_zzz http://blogs.reuters.com/breakingviews/2010/09/07/barclays-diamond-choice-spices-up-strategy-debate/comment-page-1/#comment-3679 Sun, 12 Sep 2010 16:02:14 +0000 http://blogs.reuters.com/columns/?p=3971#comment-3679 Barclays Banking Style : The Diamond way: It is worthwhile to mention that Barclays Bank has done so many goof-ups particularly in the last 4 years be it acquisition or expansion. Their strategy is very short term in nature. They believe in “Get out out at the nick of the time” from a deal. For example, they spent an awful amount of shareholders monies to expand in “Emerging Markets” and set up a base in Dubai, UAE in early 2005. With the down fall of Dubai’s financial engine in 2008, they ended up in having to make huge provisions and nurse a huge pile of NPA’s (non performing assets). The way they grew in Dubai during the period 2005 -2008 seemed highly unprofessional and without any planning whatsoever. They are paying the price now by way of huge provisions and NPA’s. As a face wash, they goofed up again in 2008 and used unprofessional shortcuts and made highly qualified bankers redundant without reason or rhyme. They have started paying the price. They are now planning to spend over GBP 100Million to rectify this situation in the so called Emerging markets region and reduce their exposure in Dubai, UAE. Basically the franchise has lost credibility and name. The senior management sitting in Dubai, UAE are busy building stories on daily basis and power point presentations to justify their respective positions. It is high time that the shareholders look into the affairs of their Middle East operations which are not above board and draining the organization.

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