Barclays is paying $50m over its lawsuit from November 2015 with Axiom Investment Advisors, an asset manager specialising in foreign exchange. The "last look" is the opportunity taken by market makers to reject a trade after the client commits to a trade at a certain price, giving them the flexibility to reject unprofitable trades, a practice which is illegal in many jurisdiction and asset classes, and frowned upon in others. However, the specific complaint by Axiom relates to delaying execution of trades, resulting in a worse consummated final price than what was initially agreed. The investigation was led by the New York Department of Financial Services (DFS). Barclays has denied wrongdoing.
Showing posts with label barclays. Show all posts
Showing posts with label barclays. Show all posts
Saturday, 20 February 2016
Wednesday, 20 May 2015
Record $5.7bn paid by banks for FX and rate rigging
Barclays was fined the most at $2.4bn. The fines were primarily for cartel-style operations in the FX market between 2008 and 2012. Barclay's CEO Antony Jenkins who hails from the British town of Stoke on Trent and has a Cranfield MBA expressed regret at the bank's actions. His stock rallied 3.4%. The fines were from a number of regulators with the US Department of Justice raking in a record windfall in fines. JP Morgan's problems apparently resulted from an ex RBS hire who was brought in as head of G10 spot trading.
Tuesday, 7 September 2010
"Unacceptable Face" Subsumes Varley as CEO of Barclays
Last year Diamond made £40m from his job at Barclays, partly through selling asset management for £8bn, to boost capital ratios (e.g. Tier One Capital ratio: ratio of core equity (common stock and reserves) to risk-weighted assets). RWA is the total assets of the bank weighted by credit risk. The BIS (Bank for International Settlements has formulas for setting RWA). Cash has zero risk weighting whereas debentures (corporate medium- to long-term debt) may have 100% risk weighting.
Vince Cable, business secretary of the Liberal democrats, wants universal banking groups like Barclays to be split up. Mandelson described Diamond as the "unacceptable face" of banking. HSBC Chairman, Stephen Green, will leave HSBC in favour of a role as trade minister in the Lib-Lab coalition. His offical tagline will be "boost British exports and attract inward investment".
Vince Cable, business secretary of the Liberal democrats, wants universal banking groups like Barclays to be split up. Mandelson described Diamond as the "unacceptable face" of banking. HSBC Chairman, Stephen Green, will leave HSBC in favour of a role as trade minister in the Lib-Lab coalition. His offical tagline will be "boost British exports and attract inward investment".
Thursday, 4 June 2009
Is Paulson the Greatest Trader Ever?
Hedge fund manager John Paulson who made $3.7bn betting against sub-prime (and UK banks like RBOS), has cut his short position in Barclays, the day before Abu Dhabi investment corporation (IPIC) pushed the share price down 5% after offloading 1.3bn shares (IPIC wants to maintain a strategic relationship with Barclays however). Paulson's position was cut on 2 June from 1.17 percent to below 0.25% (threshold for disclosure).
Paulson is thought to have lost £100m by holding his short position from November until June09 as Barclays shares have rocketed five-fold, since hitting 51p low in January. He has a property in the Hamptons.
Paulson's fame came from recognising there was a housing bubble in the United States and ACTING ON IT in 2006 while playing with spreadsheets. He made $1.25bn in a single morning from a five-point fall in the markets (late 2007). Initally, Paulson and his aide Paolo Pelligrini looked at buying puts on the S&P but they were just too darn expensive. So they started buying CDS, insurance on debt, which were very cheap. Paulson has since become the subject of a book "The Greatest Trade Ever" by Gregory Zuckerman of the WSJ.
In other news, Intel acquired embedded software provider WindRiver, a synergistic union ($11.50 per share in cash).
And the FSA banned CFD broker Blue Index who were based at St Dunstan's Hill near Old Billingsgate Market.
Paulson is thought to have lost £100m by holding his short position from November until June09 as Barclays shares have rocketed five-fold, since hitting 51p low in January. He has a property in the Hamptons.
Paulson's fame came from recognising there was a housing bubble in the United States and ACTING ON IT in 2006 while playing with spreadsheets. He made $1.25bn in a single morning from a five-point fall in the markets (late 2007). Initally, Paulson and his aide Paolo Pelligrini looked at buying puts on the S&P but they were just too darn expensive. So they started buying CDS, insurance on debt, which were very cheap. Paulson has since become the subject of a book "The Greatest Trade Ever" by Gregory Zuckerman of the WSJ.
In other news, Intel acquired embedded software provider WindRiver, a synergistic union ($11.50 per share in cash).
And the FSA banned CFD broker Blue Index who were based at St Dunstan's Hill near Old Billingsgate Market.
Wednesday, 11 March 2009
Barclays Mulling its share of the Bailout, brightsparks(_fincrisis, X). ? X =att
Barclays have up to 31 March to join the Treasury's asset insurance scheme for "toxic loans". Barclays have submitted three portfolios of assets to the government for consideration. Barclays profit for 2008 was £6.08bn ($9bn) - a profit despite the fallout in financial markets.
AT&T is creating 3000 jobs as it plans to ramp up capital spending in '09 by investing in broadband and wireless networks. It added data traffic on its network was growing 50% YoY.
AT&T is creating 3000 jobs as it plans to ramp up capital spending in '09 by investing in broadband and wireless networks. It added data traffic on its network was growing 50% YoY.
Saturday, 17 January 2009
Barclays Bank Shares Tumble 25% in Friday Trading, BoA drops 13.7% on Q4 Results
Barclays shares fell 25%, hours after the ban on short-selling was lifted. Speculation surrounds further credit writedowns at Barclays Capital (managed by this team). Are we heading for nationalisation of Barclays?
BoA reported 2008 full-year profit of $4.01 billion compared with net income of $14.98 billion for 2007. The full-year profit was greatly impacted by a Q4 loss of $1.79 billion. These results include Countrywide Financial, acquired 1 Jan 2009, but not Merrill Lynch. Bank of America this month raised $2.8 billion by selling under 15% of its shares in China’s second-largest bank, China Construction Bank.
According to their press release, Bank of America ended 2008 with a Tier 1 capital ratio of 9.15 percent. Additional capital from the Treasury will boost the company's Tier 1 capital ratio to approximately 10.70 percent, on a pro-forma basis. T1C is a Basel-measure, measuring the ratio of the bank's core equity capital to risk-weighted assets. The Basel accord specifies capital adequacy requirements for banks, "le contrôle bancaire".
BoA reported 2008 full-year profit of $4.01 billion compared with net income of $14.98 billion for 2007. The full-year profit was greatly impacted by a Q4 loss of $1.79 billion. These results include Countrywide Financial, acquired 1 Jan 2009, but not Merrill Lynch. Bank of America this month raised $2.8 billion by selling under 15% of its shares in China’s second-largest bank, China Construction Bank.
According to their press release, Bank of America ended 2008 with a Tier 1 capital ratio of 9.15 percent. Additional capital from the Treasury will boost the company's Tier 1 capital ratio to approximately 10.70 percent, on a pro-forma basis. T1C is a Basel-measure, measuring the ratio of the bank's core equity capital to risk-weighted assets. The Basel accord specifies capital adequacy requirements for banks, "le contrôle bancaire".
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