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Shen, UK, LEE discussed on FT Banking Weekly


Shen is over thirty billion pounds it's one of the uk's four clearing banks it's incredibly strategic important ain't on an international level it is closed by global regulators as globally systemically important institutions so this is a much bigger chunk to bite off four chevron and what are the main reasons about lee's recent underperformance and what progress has it made in fixing those problems barclays has had a tough time of late almost really since the financial crisis it has been struggling last year the bank was one of the worst performing shares in the sector it fell more than twelve percent last year while the european banking index rose some seven half percent and their multiple reasons for this one is the barclays as being heavily exposed to the fixed income trading markets which have been incredibly calm and that means very little activity has been low volatility and they've suffered as a result of that rapid fall in renews in one of the core parts of the barclays investment bank they've also been hit by changing capital requirements they had operated with very little capital before the financial crisis and since the crisis regular has been forcing them to increase the amount of capital held their sets and that's reduced the return on equity that they can generate and force them to shrink the balance sheet and finally they have been hit by rubber large amount of litigation and they've paid billions of pounds to settle things like investigations regulators into fixing the libel interest rate market who also the foreign exchange market and then not out of the woods yet there are several big live investigations that are still at standing on the bank so all of that has led to lots of restructuring of heavy charges and poor profitability in for two thousand seventeen the bank last month reported a loss of over one point nine billion pounds and i think if you take all the since the financial crisis in more than half of them it's actually made a net loss so.

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