A close shave on ABN Amro...

11th Oct '08 by Murakami

9 comments 3723 reads

Interesting article discussing the general malaise in UK banking and the competition between RBS and Barclays to acquire ABN Amro

"RBS paid a high price for Goodwin's obstinate pursuit of ABN Amro. Competition with his arch-rival John Varley, who runs Barclays, could have been a factor in his persistence. Varley had agreed a merger with ABN Amro before Goodwin came along to spoil the deal."

http://www.guardian.co.uk/commentisfree/2008/oct/10/banking-executivesalaries

Barclays sure are lucky they got trumped on that one... They seem to have got a far better deal in picking up the Lehmans assets

Seems like there willl be a lot of job losses but presumably the overlap between the two businesses was quite significant

http://www.citywire.co.uk/adviser/-/news/market-and-shares/content.aspx?ID=317261

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Murakami

11th Oct '08

That same article is quite critical of the Lehmans deal but, hey, it's the Guardian - they must be having a field day with the travails of the capital markets.

"Rather than learning a lesson about expensive international adventures, he is intent on building up Barclays' overseas operations. Its president, Bob Diamond, has been able to buy assets from the defunct American investment bank, Lehmans, to help turn Barclays into a force on Wall Street... Whether this is a suitable ambition for a new era of austerity in the industry is questionable".

promethean

I find it hard to be bullish on any stock in the UK banking sector - sure, Barclays aren't as troubled as RBS but they have their own share of problems. They say that they willl try to tap the market first before resorting to the governent but they certainly need to buffer the core 'tier one' capital ratio and that almost certainly means dilution for the existing shareholder base.

http://www.dailymail.co.uk/money/article-1076380/Investment-Extra-Dont-bank-banks.html

raminius

15th Oct '08

This comment has been moderated

19th Oct '08

24th Oct '08

Personally i wouldn't touch the banking sector with a bargepole. Ever since i worked for a top US Investment Bank I have believed them all to be utterly corrupt and contemptible. I have never understood their business model, lending £10 for every £1 deposit always seems like crookery to me and inevitable to fail. I am very happy to remain ignorant on banks and lose out when they benefit... There are much more solid businesses out there that don't rely on endless inflationary credit expansion.

touche.

Jackalope

i've heard that Barclay's are now laying off lots of their Wall Street staff, whilst they are doing everything they can to groom and massage their newly acquired Lehmans US team, who are now considered to be sitting on some of the best jobs on the Street. Just another irony in the credit mess.

A close shave on ABN Amro...

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Murakami

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