Breakingviews: Barclays should cut investment bank by 15%
Friday, October 04, 2013 - 03:42
Oct. 4 - Barclays' £5.8 bln capital hike still leaves questions over the size of its investment bank. A new focus on leverage ratios instead of capital versus risk-weighted assets jars with the CEO’s strategy.
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-- -- breaking -- like Barclays investment bank still looks to break. George patty Roy is breaking news columnist joins me. I'm all right George just just explain this to us they they have announced this morning in 95% take up this experience that are rights issue. Sounds impressive but -- -- appease the regulator. It's you'll we'll be all right it's. It's good news is that immediate six billion rusty has appease the regulator -- -- -- -- the points as the regulate -- back images -- facilities. That's to say this they in his back -- -- he has 3% cycle leverage rates. Which is a different way of calculating you have to base. To use the usual way -- -- -- risk when he's and to act exactly in a big problem for unseating King's Speech he exits in the -- pleased with that back to victory he'd done. Or his he -- plans to three years they. Strategic plan based on the risk -- it. -- -- -- say some mythical place yet and so let's say both he's dealt with the immediate problem by saying. Okay we're raising experience capsule and was drinking a little bit of all bank. See kind of sort the rate racist incidents. And debate you see is whether the regulator having proved itself to be a bit kind of capricious and strategies month. Well today in next couple years it says. Oh I see we will need to be a full percent average traditional 3% on an evening to you that then the question and -- a great rule -- was to both -- -- today. Aaron and -- saying that it's going to need test. Slimmed down the investment banking products business yet Andrea yet that is of the points easy not. If if they. Kind of raising capital by retaining endings is he shooting expensive. Point we is contingent of irritable stuff. Or doing another kind of -- -- poll they can just shrink the size of the U rule investment banks institute twisting raising apple. And shouldn't in the investment bank and that appointees. Invest ninety -- He's still massive hits and one trillion -- and access and and it's just a question of whether focused and just. Tim not time. Rowe who then. Actually it was due to all the -- another. Rights issue or just retaining wall and a woman will. So that's the kind of it's it's it's not only the rule really. I'm the money front that we didn't want to cash in and on 5% take up for this to this issue haven't pitched -- and certainly gonna get a rest -- very -- Well what in president yet yellow -- to kind of wrong and he's the kind of cleared up volume growth of our -- find that basically from that respect from the expensive -- and from the book of both days. An event -- settle -- thing we've we agreed to stress chassis with supporting it says it needs it and he's just. That the problem is the -- decision itself to be capricious and therefore. What's he. OK I have much. Who's been in addition to -- I'm annoyed at 15% had acute Tariq it to us an excellent glad to -- it. From breaking news side if you wanna watch our US breaking news show comes on everyday atrocities and -- in thirty PST I'm axle problems is sources.
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