barclays will ge coming out with trading update on 07.05.2009 It is expected to report profits higher than market expectations.

A good Buy Medium to Long term

Tories back Obama's bank limit plans


Mr Osborne said the Conservatives would follow the US lead.

Shadow chancellor George Osborne has told the BBC that if the Conservatives win the general election they will copy US plans to limit the size of banks. Under the proposals outlined by President Barack Obama, US retail banks will face curbs on their riskier activities.

This could lead to the largest US banks being broken up.

The Treasury said it would consider President Obama's comments on bank reform "very carefully".

BBC business editor Robert Peston said Mr Osborne's comments would "generate profound fear in the boardrooms of Barclays and Royal Bank of Scotland".

Shares in both banks fell sharply on Tuesday, with Royal Bank of Scotland losing 7% - the biggest decline on the UK's main FTSE 100 share index. Barclays lost 5.9%.

Under President Obama's proposals, retail banks would be banned from using their own money in risky financial transactions.

This would prevent them from investing in hedge and private equity funds, or engaging in so-called proprietary trading.

"This is a welcome move by President Obama that accords very much with our thinking," said Mr Osborne.

"I have said consistently that we should look at separating retail banking from activities like large scale propriety trading - and that this was best done internationally."

Obama's bold move on banks begins to justify the hype of his election


Prosaic is what President Barack Obama's first year in the Oval Office had become for many voters. But yesterday's declaration of war on Wall Street will have given his presidency a shot in the arm and a boost in the polls.

Electoral setbacks in Massachusetts and disappointment over health care reform have left a pall of mediocrity over the White House, especially when compared with the hype and hysteria which preceded Obama's swearing in.

Coach Roach outflanked by Mayweather in poetry but not proseHe's now proposing the "Volcker Rule" a separation of banking between its riskier elements (proprietary trading, hedge funds and private equity investments for a bank's own profit) and more vanilla commercial banking.

Assuming Congress votes it through, the Volcker Rule will serve a double purpose. First it will warm the hearts of Middle America. Listen to Obama's words yesterday and they were addressed to "the folks who are hurting", the 7m Americans who have lost their jobs after Wall Street's "binge of irresponsibility".

Second, it will end banking's moral hazard. Risk will be more transparent and borne by the appropriate groups. Shareholders and creditors of financial firms undertaking proprietary trading and the like will now take the profits and bear the losses, rather than just the former with the latter forced on the taxpayer. Capital, and its trading, will become more expensive but that's no bad thing and is a necessary part of repricing risk, a process that's far from complete.

That said, many of the banks' worst abuses in the credit boom were carried out in the name of client services and not on proprietary trading desks, hedge funds or in private equity deals. Avoiding a repeat of that will need carefully drafted legislation.

Where does this leave the UK?

George Osborne was quick last night to welcome the move as it chimes with Tory thinking on separating banks an Obama-style levy is also more likely now too. Mervyn King, Governor of the Bank of England, will welcome the White House's initiative, although Lord Turner, chairman of the Financial Services Authority, will probably find things to criticise.

He prefers internal separation of a bank's functions through regulation rather than legal separation.

But the City would continue, just organised very differently another Big Bang if you like.

But on the day Goldman Sachs revealed more "massive bonuses", to use Obama's term, Wall Street finally went too far. In his view, banking is no longer just socially unacceptable, it's politically unacceptable too and must be defeated, like any opponent.

Looking at 50dma and 3

making a nice profit on this one now....3 very welcome.

Every division has been profitable, with even Barclaycard and the UK retail bank bucking the economic gloom.

The numbers will be flattered by the 6.2bn profit on the sale of Barclays Global Investors, the asset management business bought by BlackRock (NYSE: BLK - news) last year. That sale and Barclays' strong performance through one of the most challenging periods on record will allow it to set aside 8bn in capital to help rebuild its financial strength, bolstering its core tier one ratio to an industry-leading 9.6pc. The amount will also significantly reduce the 17bn of capital that Credit Suisse estimates Barclays needs to find over the next three years to meet new regulatory guidelines.

Every division has been profitable, with even Barclaycard and the UK retail bank bucking the economic gloom.

The numbers will be flattered by the 6.2bn profit on the sale of Barclays Global Investors, the asset management business bought by BlackRock (NYSE: BLK - news) last year. That sale and Barclays' strong performance through one of the most challenging periods on record will allow it to set aside 8bn in capital to help rebuild its financial strength, bolstering its core tier one ratio to an industry-leading 9.6pc. The amount will also significantly reduce the 17bn of capital that Credit Suisse estimates Barclays needs to find over the next three years to meet new regulatory guidelines.

this chart looks so head and shoulders toppy its hard to believe it wont happen.so maybe it wont . it hasnt yet, the neck line is at 250sh. will it break? i dont know but am watching.
please do be careful.
regards
jkd

Preliminary Results.

- The underlying profits of the Group were very strong. Excluding movement on own credit, gains on acquisitions and disposals and gains on debt buy-backs, Group profit before tax increased 243% to 5,634m from 1,643m

- Group profit before tax was 11,642m, 92% up on 2008. Excluding the 6,331m profit on disposal of Barclays Global Investors (BGI), total Group profit before tax was 5,311m, down 13%

- Retained earnings in 2009 were 9.6bn (2008: 3.2bn)

- The results were driven by very strong income performance and cost containment creating significant positive income:cost jaws and impairment in line with expectations:

- Record income of 30,986m, 34% up on 2008

- Increase in income absorbed higher impairment charges of 8,071m, 49% up on 2008, with a loan loss rate of 156bps (2008: 95bps); or 135bps1 on a basis consistent with our planning assumption of 130-150bps

- Cost:income ratio improved to 58% (2008: 62%), driven by control of underlying costs within GRCB and a reduction in the compensation:income ratio within Barclays Capital to 38% (2008: 44%)

- Total Group 2009 discretionary cash payments of 1.5bn and a further 1.2bn of long term awards, vesting over 3 years and subject to claw back

I believe I am correct in saying div is 1.5p. Ex-divi date 24th Feb '10.

encouraging growth in TBV to 337p, strong start to year for trading also - mirrors comments from CS, DBK on investment banking.

divi not much, but more important is the ongoing capital recovery, so not too bothered. Plenty of time for divis in a couple of years...

upgrades likely, can see stock back towards 330p

Size of derivative exposure on both sides of balance sheet continuing to fall is the most encouraging sign for me, but still a long way to go and I would favour a split out of the investment banking arm.

Partridge,

Where do you obtain the information on Derivatives of BCL and other shares from?

If you have the Web site I would be grateful if you would Cut and paste it.

Fred. I am a tech dinosaur, but I do like looking at numbers. The derivatives figures for assets included in the "Consolidated Summary Balance Sheet" figures reported today showed as 985Billion/417 Billion for end of 2008 and 2009 respectively and for liabilities 968/403Billion respectively. Figures still eye-wateringly large, but they do seem to be getting a grip. Notice they also slipped in a 371M credit for cutting back on defined benefit pension scheme (which basically applies to those not earning Barcap bonuses), but that pension scheme still shows large deficit. Not out of the wood yet imo, but I continue to hold.

Looking good if 3 holds.

Gone ex-divi today, so a slight sp correction not unexpected.

Not in the forward diary, glad I only sold small amount yesterday at 313p.

A bank report I received in my inbox:www.uk-analyst.com

John Varley and Bob Diamond appear to have exercised nil cost options today and subsequently sold some of the shares acquired. Price quoted for Varley at 347.9p but Diamond sold two lots at 715.42p and 733p respectively. Can anyone explain? - I would love to get that price for mine!

partridge suggest you read the RNS released by BARC which fully explains the sp used by their trustees.

I have read it, but don't understand and am willing to be educated. Take the deal where he sold 371,079 shares to satisfy withholding liabilities. One RNS (14.01) says sold at 715.422p, whereas the full RNS (12.10) says that was the award price. Am I misreading the 14.01 RNS or is it just badly written and they mean the exercise price was 715.422p, without disclosing what he sold them for?