European banking correspondent
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May 9, 2014

Barclays sees generational shift, rivals smell blood

LONDON (Reuters) – Where Barclays (BARC.L: Quote, Profile, Research) sees a “generational shift”, its investment bank rivals are smelling blood.

The British bank, which under former chief Bob Diamond poached top staff and customers from competitors in trouble after the financial crisis, now risks suffering the same fate as it radically shrinks its investment banking business.

May 8, 2014

StanChart investors rebel over pay plan after profit falls

HONG KONG/LONDON (Reuters) – Asia-focused bank Standard Chartered saw more than 40 percent of its shareholders oppose its pay plan on Thursday, hours after the bank posted a drop in profits due to lower investment bank revenues and problems in South Korea.

The London-based bank said its remuneration policy for directors was approved, but 40.8 percent of votes cast were opposed to the remuneration policy for its directors.

May 8, 2014

Barclays axes 19,000 jobs, reins in Wall Street ambitions

LONDON (Reuters) – Britain’s Barclays (BARC.L: Quote, Profile, Research, Stock Buzz) reined in its ambitions to be a Wall Street powerhouse on Thursday and signaled a return to its retail banking roots with a plan to hive off much of its investment bank and axe one in four jobs at the division.

Chief Executive Antony Jenkins, in his second strategic review since taking over as CEO in 2012, will cut 19,000 jobs in the next three years, 7,000 of them at the investment bank, and park 115 billion euros worth of risk-weighted assets in a new “bad bank”.

May 8, 2014

StanChart says weak first-quarter continued in April and May

HONG KONG/LONDON (Reuters) – Asia-focused bank Standard Chartered (STAN.L: Quote, Profile, Research, Stock Buzz) posted a drop in first-quarter profit, hurt by lower investment bank revenues, weaker Asian currencies and ongoing problems at its South Korean business.

The London-based bank, which earns about four-fifths of its income from Asia, said on Thursday the weak first-quarter conditions had continued in April and so far in May.

May 8, 2014

StanChart says weak Q1 continued in April and May

HONG KONG/LONDON, May 8 (Reuters) – Asia-focused bank
Standard Chartered posted a drop in first-quarter
profit, hurt by lower investment bank revenues, weaker Asian
currencies and ongoing problems at its South Korean business.

The London-based bank, which earns about four-fifths of its
income from Asia, said on Thursday the weak first-quarter
conditions had continued in April and so far in May.

May 7, 2014

Day of reckoning looms for Barclays’ investment bank

LONDON, May 7 (Reuters) – Barclays Plc is set to
announce plans to cut thousands of jobs and shrink its
investment bank as Chief Executive Antony Jenkins tries to get
his turnaround plan for the British bank back on track after a
bad 10 months.

Jenkins, who took the CEO hot seat in August 2012 after
investment banker Bob Diamond was ousted following a scandal
over the rigging of benchmark interest rates, will lay out a
revised strategy for Barclays on Thursday.

May 7, 2014

HSBC says April activity muted after first-quarter profit drop

LONDON (Reuters) – HSBC’s (HSBA.L: Quote, Profile, Research, Stock Buzz) first-quarter pretax profit fell 20 percent from a year ago to just under $7 billion, as revenue dropped in Brazil and at its investment bank, while last year’s earnings were swelled by asset sales.

Europe’s biggest bank, which operates across 75 countries, said revenue prospects were decent in Asia but weaker in Latin America, where it has retreated from many markets after a difficult few years.

Apr 29, 2014

Barclays to announce “bad bank” next week -source

April 29 (Reuters) – British bank Barclays Plc will
next week announce the creation of a bad bank portfolio of
assets it deems non-core that it intends to sell or run down as
part of a streamlining of its investment bank, a person familiar
with the matter said on Tuesday.

Last year, Barclays Chief Executive Antony Jenkins announced
a portfolio of assets termed Exit Quadrant, that it aimed to get
rid of; and these assets are likely to go in the non-core
portfolio along with commodities assets following last week’s
decision by the bank to exit that business, the Financial Times
said.

Apr 29, 2014

Barclays dealmaker McGee quits as U.S. head

LONDON, April 29 (Reuters) – Hugh ‘Skip’ McGee, one of the
British bank Barclays’ highest earners, has quit as
head of its Americas business, the bank saying he did not want
to oversee the task of establishing a new holding company
required under tougher U.S. rules.

The departure of the former Lehman Brothers dealmaker
coincides with pressure on Barclays Chief Executive Antony
Jenkins to cut staff pay after shareholders last week rebelled
against a decision to increase bonuses.

Apr 25, 2014

Top investors to file 1 billion pounds legal claims against RBS – sources

LONDON (Reuters) – Five of Britain’s biggest investors are set to file lawsuits against Royal Bank of Scotland (RBS.L: Quote, Profile, Research) next week, saying they were misled over its massive rights issue in 2008 and claiming more than 1 billion pounds back, sources said.

Legal & General (LGEN.L: Quote, Profile, Research) – the biggest investor in RBS at the time of the rights issue – and Standard Life (SL.L: Quote, Profile, Research), Prudential (PRU.L: Quote, Profile, Research), Aviva (AV.L: Quote, Profile, Research) and Universities Superannuation Scheme (USS) are all expected to file claims in a London court on Wednesday, five people with knowledge of the matter told Reuters on Friday.

    • About Steve

      "Responsible for overseeing coverage of the European bank sector and direct coverage of the international UK-based banks, based in London. Have been in current role for three years, and for previous three years was UK banking reporter. Have over 15 years experience as a financial newswire journalist in London and New York."
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