Barclays funding
Discussion
Well their move today was quite a surprise to me shunning the UK Govt's aid instead opting for the Oil rich nations backing.
Why is this important? Well RBS seem to be forced to getting out of Investment banking due to the Govts backing & being a major shareholder - Barclays has just bought LB Investment banking divisions at rock bottom prices and is posting better profits for 2008 than they did for 2007.... and do not want to get out of investment banking hence the need for non UK Govt backing. The tiny issue that if the govt had backed it then there would be big changes in the bonus structure for me is irrelevant.
So could Barclays now have a real competitive advantage in the UK? IF/when the other banks do get back into investment banking after paying off the Govt they will be many years behind Barclays... so is now a good time to buy their shares?
Why is this important? Well RBS seem to be forced to getting out of Investment banking due to the Govts backing & being a major shareholder - Barclays has just bought LB Investment banking divisions at rock bottom prices and is posting better profits for 2008 than they did for 2007.... and do not want to get out of investment banking hence the need for non UK Govt backing. The tiny issue that if the govt had backed it then there would be big changes in the bonus structure for me is irrelevant.
So could Barclays now have a real competitive advantage in the UK? IF/when the other banks do get back into investment banking after paying off the Govt they will be many years behind Barclays... so is now a good time to buy their shares?
Welshbeef said:
Well their move today was quite a surprise to me shunning the UK Govt's aid instead opting for the Oil rich nations backing.
Why is this important? Well RBS seem to be forced to getting out of Investment banking due to the Govts backing & being a major shareholder - Barclays has just bought LB Investment banking divisions at rock bottom prices and is posting better profits for 2008 than they did for 2007.... and do not want to get out of investment banking hence the need for non UK Govt backing. The tiny issue that if the govt had backed it then there would be big changes in the bonus structure for me is irrelevant.
So could Barclays now have a real competitive advantage in the UK? IF/when the other banks do get back into investment banking after paying off the Govt they will be many years behind Barclays... so is now a good time to buy their shares?
It would be a brave man (IMHO)........lots of spin going on.Why is this important? Well RBS seem to be forced to getting out of Investment banking due to the Govts backing & being a major shareholder - Barclays has just bought LB Investment banking divisions at rock bottom prices and is posting better profits for 2008 than they did for 2007.... and do not want to get out of investment banking hence the need for non UK Govt backing. The tiny issue that if the govt had backed it then there would be big changes in the bonus structure for me is irrelevant.
So could Barclays now have a real competitive advantage in the UK? IF/when the other banks do get back into investment banking after paying off the Govt they will be many years behind Barclays... so is now a good time to buy their shares?
...but what do I know - I bought into the banks 3 months ago.
Soovy is our resident "diamond" expert.
Edited by Irish on Friday 31st October 10:40
Correct Change said:
I like the way the Government are trying to tar everyone with the same brush by strong arming HSBC into taking funding, only to be told by HSBC effectively to 'f*ck off'.
I didnt know that the HSBC were offered it!Clearly the HSBC & Santander do not need the UK Govts help & there in lies a big issue for the UK Govt its suddenly not a level playing field. The Govt will force the banks in its clasp to pass on BoE rate cuts but the HSBC & Santander & now Barclays do not have to follow suit but they then have a competative disadvantage.
Welshbeef said:
Well their move today was quite a surprise to me shunning the UK Govt's aid instead opting for the Oil rich nations backing.
what's the surprise? so you need to obtain finance - do you choose from:1) get told what to do with Dividends, Bonuses, Business Strategy (i.e. investment activities, lending) 2) none of the above, at a slightly higher borrowing cost [albeit based on equity values], without 'taxpayers' whinging about 'their' money ..
seems a no-brainer unless you think your business strategy is pants.
As far as I'm aware HSBC refused funding from an EU scheme designed to keep banks lending to small businesses, despite strong pressure from GB to take it, because they have enough of their own money, which is obviously cheaper than borrowing somebody elses.
What is worrying are the lengths the Government are going to to control the banks and take commercial decisions for them. Good on HSBC for telling them where to stick it.
What is worrying are the lengths the Government are going to to control the banks and take commercial decisions for them. Good on HSBC for telling them where to stick it.
Correct Change said:
What is worrying are the lengths the Government are going to to control the banks and take commercial decisions for them. Good on HSBC for telling them where to stick it.
Not sure about that, given the banks in question have effectively gone bust as a result of previous management recklessness just as surely as the Northern Rock. Seems reasonable for the taxpayer to have a say in how they run themselves in future.Yes, it's good to see HSBC and Barclays able to carry on without resorting to taxpayer money. To some extent we must thank Gordon Brown for this (although it hurts!) as he's made the taxpayer money sufficiently "expensive" in cost and terms that banks which can survive on their own prefer to do so.
The question which remains is whether Barclays management are taking "expensive" money from Middle East just so that the people at the top can go on stuffing their pockets without intervention from the UK government.
Time will tell.....
If you are on about barclays funding for investment banking, remember Barclays and BarCap (Investment bank), are 2 different companies (same group), BarCap is big out in Asia and other places. Barclays is the one in the UK and is the non investment side of the group (mortgages, etc).
Edited by Dupont666 on Friday 31st October 11:55
haworthlloyd1 said:
hsbc and santander can now do more or less as they wish as can barclays whilst hbos and rbs need to be treated like naughty schoolboys
as someone said no longer a level playing field - hsbc and santander will start powering ahead.
That depends how much they get hit by what is going on (or down to be more accurate) in SE Asia and South America, where they are highly exposed. as someone said no longer a level playing field - hsbc and santander will start powering ahead.
smack said:
haworthlloyd1 said:
hsbc and santander can now do more or less as they wish as can barclays whilst hbos and rbs need to be treated like naughty schoolboys
as someone said no longer a level playing field - hsbc and santander will start powering ahead.
That depends how much they get hit by what is going on (or down to be more accurate) in SE Asia and South America, where they are highly exposed. as someone said no longer a level playing field - hsbc and santander will start powering ahead.
South America, not too sure, but HSBC already went though a coup over there so doubt it will get any worse than that.
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