LONDON, Sept 16 (Reuters) – For Chief Executive Antonio
Horta-Osorio, Britain’s move to sell a 3.3 billion pound ($5.3
billion) stake in Lloyds Banking Group is a vindication
after his leadership was nearly derailed by health issues just
months into his tenure.
The Lloyds share sale, announced after Monday’s close, caps
a remarkable 12 months for the 49-year-old, named 2013′s “Banker
of the Year” as Lloyds returned to profit and the value of its
shares more than doubled, a turnaround all the more striking
following his rocky first year in the role.
LONDON, Sept 16 (Reuters) – Britain’s government has brought
in the UK boss of Credit Suisse to manage the sale of its stakes
in Lloyds and Royal Bank of Scotland, hoping
for a successful turnaround after it had to bail both out with
taxpayers’ money in 2008.
James Leigh Pemberton, currently UK chief executive of
Credit Suisse, has been named head of UKFI, the
institution set up to manage the state’s banking investments. He
was one of the main advisers to the government when it pumped 45
billion pounds ($71 billion) into RBS and 20 billion into Lloyds
to keep them afloat during the 2008 financial crisis.
LONDON, Sept 16 (Reuters) – Barclays has revealed a
watchdog’s finding that it acted recklessly in failing to
disclose payments of 322 million pounds ($511 million) in
advisory fees to Qatari investors who helped bail it out during
the credit crunch.
In its prospectus for a 5.95 billion pound ($9.4
billion)share issue, the British bank said the Financial Conduct
Authority (FCA) planned to fine Barclays 50 million pounds for
its failure to adequately disclose the fees.
LONDON (Reuters) – From his 23rd floor office of Citi’s Canary Wharf tower, Tom Bolland can see the old European HQ of Lehman Brothers, where five years ago hundreds of his former colleagues were abruptly turfed out onto the street carrying their belongings in boxes.
The investment bank’s collapse was the symbolic moment of the financial crisis, and it is a surprise to many that Lehman Brothers in Europe still lives on. It is under administrators, but two-thirds of its 500 staff are former Lehman employees helping to clear up the mess that is left.
LONDON (Reuters) – Hedge funds which gambled on how much money would be recovered from the bankrupt carcass of Lehman Brothers are set to make hundreds of millions of pounds from a full payout to creditors of the European arm.
Five years on from the collapse, payouts to Lehman’s creditors in Europe are on course to top 100 percent sometime next year, following a recovery of assets by administrators and legal victories over other parts of the ex-U.S. investment bank.
LONDON, Sept 10 (Reuters) – The boss of Barclays
said new technology is ready to transform the experience of bank
customers and help his British lender deliver almost half its
planned annual cost savings of 1.7 billion pounds ($2.7
Barclays Chief Executive Antony Jenkins on Tuesday said
operations and technology improvements should deliver 800
million pounds of savings in the next three years.
LONDON, Sept 6 (Reuters/IFR) – European banks are stepping up plans to raise money via bonds that can top up their capital, following a green light from regulators, potentially opening up a market worth up to 240 billion euros ($317 billion).
The bonds, known as hybrids, have equity-like features but are cheaper than equity and could help banks meet tough new rules to prevent a repeat of the 2007-2009 financial crisis when taxpayers bore the brunt of bank bailouts.
LONDON, Sept 6 (Reuters) – British politicians may take a
fresh look next year at recent changes to the way Britons
receive financial advice, which critics say has left people less
likely to get any help.
Mark Garnier, a Conservative Party legislator who sits on
the Treasury Select Committee which scrutinises financial
issues, said he expected the committee to review how the system
is working next summer.
LONDON (Reuters) – Barclays Plc (BARC.L: Quote, Profile, Research, Stock Buzz) is set to launch its 5.8 billion pound ($9 billion) rights issue in two weeks, possibly on the fifth anniversary of its takeover of the U.S. operations of Lehman Brothers, people familiar with the matter said on Monday.
The one-in-four offer, priced at 185 pence a share, is expected in the third week of September, they said. Barclays did the Lehman deal on September 16, 2008, a day after the U.S. investment bank collapsed.
LONDON (Reuters) – Britain’s Co-operative Group apologised to customers and investors on Thursday for a 700 million pound ($1.1 billion) loss in its banking business and said sorting out problems there would take four years and involve job cuts.
The losses stem mostly from the Co-op’s purchase in 2009 of the Britannia Building Society, found to hold bad loans that along with costly IT problems, the Co-op Bank’s own losses and regulatory demands now mean the bank needs to find 1.5 billion pounds. The Co-op is relying on bondholders to approve a lifesaving funding proposal – the first major test of a plan asking investors, not taxpayers, to take a bailout hit.