Could Barclays really be set for Standard Chartered mega merger?
A mega merger between Barclays and Commonplace Chartered within the FT? Yummy!
That was most likely the response of half the Metropolis’s legal professionals, funding bankers and PR consultants to the report saying the concept has been kicked round amongst Barclays administrators. No, no, wait a minute. I’ve acquired that incorrect. From the highest canine to the graduate trainees, all of them mentioned yummy!
They’d finest curb their enthusiasm for now. There was extra chilly H2O being poured on the concept from Barclays towers than has leaked out of Thames Water’s pipes this yr
The rationale the story acquired the eye it did is because of the presence of activist Ed Bramson on the Barclays shareholder register, and the notion that the financial institution has acquired to do one thing to deal with him.
It isn’t fairly clear how a serious deal would do the trick, however it will definitely qualify as a “one thing” and would possibly create sufficient pleasure to drown Mr Bramson out.
Folks have, in any case, been speaking about Stan Chart, which is focussed on what are typically patronisingly known as ‘rising markets’, and Barclays getting collectively for years.
The thought retains arising as a result of lots of people assume it makes some type of sense. However Investec’s Ian Gordon most likely had the suitable of it when he described such a deal as “logistically prohibitive” even have been the 2 sides in a position to cope with the formidable regulatory challenges it will current.
It could additionally moderately contradict CEO Jes Staley’s said technique of making a focussed, transatlantic financial institution with pursuits in retail, wholesale and funding banking.
It’s doable to poke holes on this grand plan, but it surely has made for a extra coherent enterprise than has been the case with Barclays for a while, and it’s the place Mr Staley has planted his flag.
The phrase is that he’s buzzing, eager to push it by now he’s survived a £642,000 fantastic from the Monetary Conduct Authority for making an attempt to unmask a whistleblower.
An excellent greater ‘legacy’ concern has additionally gone his method: Barclays managed to get costs introduced by the Severe Fraud Workplace referring to the financial institution’s 2008 fund elevating dismissed, though the fraud busting company is ready to attempt to get them reinstated.
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There are numerous who assume that the whistleblower concern ought to have led to Mr Staley’s resignation. However the board opted to again him. That being the case, it actually ought to hold on doing so and face Mr Bramson down.
He has a proper to his opinion as a major shareholder. Barclays nonetheless hasn’t formally heard what it’s, though its administrators may have learn the studies suggesting it entails gutting the funding financial institution. However he solely has 5 per cent, and there hasn’t but been a lot signal of others lining as much as again him in important numbers. So Barclays ought to have the ability to reply with a “thanks, we’ll take that underneath advisement”.
In the meantime, these on the lookout for deal buzz ought to solid their eyes elsewhere, beginning with Virgin Cash.
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