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Jul 6, 2012
via Breakingviews

Barclays can’t easily divorce BarCap

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By George Hay

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

Barclays will find it tough to undo Bob Diamond’s handiwork. The UK bank’s recently departed chief executive spent over 15 years building the firm’s investment bank, Barclays Capital, into one of the biggest of its kind in the world. Now the unit’s strategic contribution is in doubt following its role in the Libor scandal. But even if Diamond’s replacement wanted to get shot of his pride and joy, it would be hard to do.

Jul 4, 2012

Investors may shun big Libor lawsuit and go it alone

By Tom Hals

(Reuters) – The stakes are rising in lawsuits against big banks over allegations they rigged benchmark interest rates, as some large investors may opt out of a massive class action and strike out on their own.

Competing lawsuits could drive up the legal costs for the banks, which are accused of colluding to manipulate the global benchmark Libor rate that sets prices on $350 trillion (224 trillion pounds) of derivatives and other financial products.

Jul 3, 2012

Analysis: Investors may shun big Libor lawsuit and go it alone

By Tom Hals

(Reuters) – The stakes are rising in lawsuits against big banks over allegations they rigged benchmark interest rates, as some large investors may opt out of a massive class action and strike out on their own.

Competing lawsuits could drive up the legal costs for the banks, which are accused of colluding to manipulate the global benchmark Libor rate that sets prices on $350 trillion of derivatives and other financial products.

Jul 3, 2012
via Breakingviews

Diamond’s exit leaves Barclays at a crossroads

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By George Hay

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

Bob Diamond has left the building. One day after penning an epic 1,900 word letter to staff pledging to stay at Barclays, the interest rate fixing scandal has forced the UK bank’s chief executive to quit. His is a hard act to follow. And in replacing Diamond, the board faces a critical strategic decision.

Jun 29, 2012
via Breakingviews

Would the ECB downgrade France?

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By George Hay

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

The European Central Bank rightly wants to loosen the grip of ratings agencies. That is why it’s considering the use of its own internal ratings system for the collateral that banks can swap in its liquidity operations. But like any do-it-yourself solution, this could easily end in a botch job.

Jun 28, 2012

Libor fallout could trash UK bank earnings again

By George Hay

LONDON, June 28 (Reuters Breakingviews) – The Libor scandal
is a red rag to compensation lawyers. For British banks, the
affair threatens to force them into making hefty provisions that
would trash earnings a second year in a row. And the pain could
spread beyond the UK.

In 2011, UK lenders’ profit was savaged by multi-billion
pound provisions to deal with the legal fallout from the
misselling of useless insurance to protect mortgages from
default. Now investors are rightly fearing another earnings
bonfire following revelations that Barclays (BARC.L: Quote, Profile, Research) and
potentially other global banks have been manipulating the London
Interbank Offered Rate. Barclays’ shares fell 15 percent on June
28, while Royal Bank of Scotland (RBS.L: Quote, Profile, Research) fell 11 percent.

Jun 28, 2012

BREAKINGVIEWS:Libor fallout could trash UK bank earnings again

By George Hay

LONDON, June 28 (Reuters Breakingviews) – The Libor scandal
is a red rag to compensation lawyers. For British banks, the
affair threatens to force them into making hefty provisions that
would trash earnings a second year in a row. And the pain could
spread beyond the UK.

In 2011, UK lenders’ profit was savaged by multi-billion
pound provisions to deal with the legal fallout from the
misselling of useless insurance to protect mortgages from
default. Now investors are rightly fearing another earnings
bonfire following revelations that Barclays (BARC.L: Quote, Profile, Research) and
potentially other global banks have been manipulating the London
Interbank Offered Rate. Barclays’ shares fell 15 percent on June
28, while Royal Bank of Scotland (RBS.L: Quote, Profile, Research) fell 11 percent.

Jun 28, 2012
via Breakingviews

MPS capital plan only solves immediate crisis

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By George Hay

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

Monte dei Paschi di Siena has bowed to the inevitable. Italy’s third-largest bank always looked a good 1.5 billion euros short of capital to pass the European Banking Authority’s stress tests. That’s exactly the amount the Italian state will now pump into the Tuscan lender.

Jun 27, 2012
via Breakingviews

Barclays’ Libor penalty goes beyond the financial

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By George Hay
The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

Barclays’ reputation has hit a new low. The UK bank on June 27 received a 290 million pound fine from UK and U.S. regulators for trying to rig the London Interbank Offered Rate (Libor). The UK element is the biggest fine the Financial Services Authority has ever handed out.

Jun 26, 2012

Mexican glassmaker case may export U.S. bankruptcy rules

By Tom Hals

(Reuters) – Mexican glassmaker Vitro SAB is heading to a U.S. appeals court to save its restructuring at home from an assault by U.S. creditors in a case that could transport the U.S. bankruptcy code beyond that nation’s borders.

The case pits one of Monterrey, Mexico’s powerful and politically connected “Group of 10″ businesses against U.S. hedge funds, which Latin American critics have reviled as “vultures” for their battle against Argentina’s sovereign debt restructuring.

    • About George

      "George Hay writes about the banking and property sectors. He joined from Thomson Financial News, where he was a companies correspondent. Before that he worked at United Business Media, where he was news editor of Building Magazine. He has a first in English Literature from Edinburgh University, and was nominated in two categories at the 2009 Business Journalist of the Year Awards."
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