RBS, Barclays unfazed by regulation threats

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Economy
Written by Gary Howes   
Wednesday, 24 June 2009

Morning Business News, Wed 24 June: RBS, Barclays, HSBC and regulation changes.

 

Ministers will announce a crackdown on Britain’s biggest banks next week, putting pressure on them to reorganise or face a blitz of more onerous capital and liquidity rules.

In a move that could push up their cost of capital or force them to accept worse terms from their trading counterparties, large banks will be encouraged to restructure themselves so that taxpayers do not foot the bill if their higher-risk investment banking divisions fail, the Times reports.

The biggest investment banks that are likely to be fingered include RBS, Barclays and HSBC.

It appears that the news has however not riled investors who are most likely to wait for the details of the proposed regulatory changes.

RBS (LON:RBS) is up slightly this morning while HSBC (LON:HSBA) is down a touch by 0.36%

Barclays (LON:BARC) is leading the banks this morning on with gains of 2.39% by 9:15am on news that Al Habtoor Group LLC, the owner of hotels in Dubai and Beirut, plans to increase its stake in Barclays Plc to as much as 2.5 percent, its chairman said.

“We have a good stake in the bank and we intend to raise it” to “about 2 percent or 2.5 percent,” Khalaf Al Habtoor said in a phone interview from London late yesterday. “The price is very attractive” and “we have confidence in the bank’s strength and the UK’s regulatory system,” he added.

Al Habtoor has set aside as much as $400 million for investments and acquisitions this year and may borrow to add to the amount, Al Habtoor said.

The Dubai-based company currently owns 1.4 percent of Barclays. 

 
 
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