Barclays plc
Encyclopedia
Bank
A bank is a financial institution that serves as a financial intermediary. The term "bank" may refer to one of several related types of entities:...
and financial services
Financial services
Financial services refer to services provided by the finance industry. The finance industry encompasses a broad range of organizations that deal with the management of money. Among these organizations are credit unions, banks, credit card companies, insurance companies, consumer finance companies,...
company headquartered in London
London
London is the capital city of :England and the :United Kingdom, the largest metropolitan area in the United Kingdom, and the largest urban zone in the European Union by most measures. Located on the River Thames, London has been a major settlement for two millennia, its history going back to its...
, United Kingdom
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
. As of 2010 it was the world's 10th-largest banking and financial services group and 21st-largest company according to a composite measure by Forbes
Forbes
Forbes is an American publishing and media company. Its flagship publication, the Forbes magazine, is published biweekly. Its primary competitors in the national business magazine category are Fortune, which is also published biweekly, and Business Week...
magazine. It has operations in over 50 countries and territories across Africa, Asia, Europe, North America and South America and around 48 million customers. As of 30 June 2010 it had total assets of €1.94 trillion, the third-largest of any bank worldwide (after BNP Paribas
BNP Paribas
BNP Paribas S.A. is a global banking group, headquartered in Paris, with its second global headquarters in London. In October 2010 BNP Paribas was ranked by Bloomberg and Forbes as the largest bank and largest company in the world by assets with over $3.1 trillion. It was formed through the merger...
and HSBC
HSBC
HSBC Holdings plc is a global banking and financial services company headquartered in Canary Wharf, London, United Kingdom. it is the world's second-largest banking and financial services group and second-largest public company according to a composite measure by Forbes magazine...
).
Barclays is a universal bank
Universal bank
A universal bank participates in many kinds of banking activities and is both a commercial bank and an investment bank.The concept is most relevant in the United Kingdom and the United States, where historically there was a distinction drawn between pure investment banks and commercial banks. In...
and is organised within two business 'clusters': Corporate & Investment Banking and Wealth Management, and Global Retail Banking. The Corporate & Investment Banking and Wealth Management cluster comprises three business units: Barclays Capital
Barclays Capital
Barclays Capital is a global British investment bank. It is the investment banking division of Barclays plc which has a balance sheet of over £1.2 trillion . Barclays Capital provides financing and risk management services to large companies, institutions and government clients. It is a primary...
(investment banking
Investment banking
An investment bank is a financial institution that assists individuals, corporations and governments in raising capital by underwriting and/or acting as the client's agent in the issuance of securities...
), Barclays Corporate (commercial bank
Commercial bank
After the implementation of the Glass–Steagall Act, the U.S. Congress required that banks engage only in banking activities, whereas investment banks were limited to capital market activities. As the two no longer have to be under separate ownership under U.S...
ing) and Barclays Wealth
Barclays Wealth
Barclays Wealth is a UK wealth manager providing international and private banking, advisory, fiduciary services, investment management and, through Barclays Stockbrokers, brokerage....
(wealth management
Wealth management
Wealth management is an investment advisory discipline that incorporates financial planning, investment portfolio management and a number of aggregated financial services...
). The Global Retail Banking cluster comprises four business units: Barclaycard
Barclaycard
Barclaycard, part of Barclays Retail and Business Banking, is a global payment business. The Barclaycard was the first credit card introduced in the UK, coming into service in 1966. It enjoyed a monopoly until the introduction of the Access card in 1972....
(credit card
Credit card
A credit card is a small plastic card issued to users as a system of payment. It allows its holder to buy goods and services based on the holder's promise to pay for these goods and services...
and loan
Loan
A loan is a type of debt. Like all debt instruments, a loan entails the redistribution of financial assets over time, between the lender and the borrower....
provision), Barclays Africa, UK Retail Banking and Western Europe Retail Banking.
Barclays' primary listing is on the London Stock Exchange
London Stock Exchange
The London Stock Exchange is a stock exchange located in the City of London within the United Kingdom. , the Exchange had a market capitalisation of US$3.7495 trillion, making it the fourth-largest stock exchange in the world by this measurement...
and it is a constituent of the FTSE 100 Index
FTSE 100 Index
The FTSE 100 Index, also called FTSE 100, FTSE, or, informally, the footsie , is a share index of the 100 most highly capitalised UK companies listed on the London Stock Exchange....
. It has a secondary listing on the New York Stock Exchange
New York Stock Exchange
The New York Stock Exchange is a stock exchange located at 11 Wall Street in Lower Manhattan, New York City, USA. It is by far the world's largest stock exchange by market capitalization of its listed companies at 13.39 trillion as of Dec 2010...
.
Early years
This bank traces its origins back to 1690 when John Freame and Thomas Gould started trading as goldsmithGoldsmith
A goldsmith is a metalworker who specializes in working with gold and other precious metals. Since ancient times the techniques of a goldsmith have evolved very little in order to produce items of jewelry of quality standards. In modern times actual goldsmiths are rare...
bankers in Lombard Street, London
Lombard Street, London
Lombard Street is a street in the City of London.It runs from the corner of the Bank of England at its north-west end, where it meets a major junction including Poultry, King William Street, and Threadneedle Street, south-east to Gracechurch Street....
. The name "Barclays" became associated with the business in 1736, when James Barclay, son-in-law of John Freame, one of the founders, became a partner in the business.
In 1728, the bank moved to 54 Lombard Street, which was identified by the 'Sign of the Black Spread Eagle', over the years becoming a core part of the bank's identity.
In 1776 the firm was styled "Barclay, Bevan and Bening" and so remained until 1785, when another partner, John Tritton, who had married a Barclay, was admitted, and the business then became "Barclay, Bevan, Barclay and Tritton".
In 1896 several banks in London and the English provinces, notably Backhouse's Bank
Backhouse's Bank
Backhouse's Bank of Darlington was founded in 1774 by James Backhouse , a Quaker flax dresser and linen manufacturer, and his sons Jonathan and James ....
of Darlington
Darlington
Darlington is a market town in the Borough of Darlington, part of the ceremonial county of County Durham, England. It lies on the small River Skerne, a tributary of the River Tees, not far from the main river. It is the main population centre in the borough, with a population of 97,838 as of 2001...
and Gurney's Bank
Gurney's bank
Gurney's bank was a well-respected family-run bank headquartered in Norwich, England. It merged into Barclays Bank in 1896.-History:The bank was founded in 1770 by John and Henry Gurney, sons of John Gurney , who passed the business to Henry's son, Bartlett Gurney, in 1777...
of Norwich
Norwich
Norwich is a city in England. It is the regional administrative centre and county town of Norfolk. During the 11th century, Norwich was the largest city in England after London, and one of the most important places in the kingdom...
, united under the banner of Barclays and Co., a joint-stock bank. Between 1905 and 1916 Barclays extended its branch network by making acquisitions of small English banks.
Further expansion followed in 1918 when Barclays amalgamated with the London, Provincial and South Western Bank and in 1919 when the British Linen Bank was acquired by Barclays Bank, although the British Linen Bank retained a separate board of directors and continued to issue its own bank notes (see Banknotes of the pound sterling). Then in 1924 the planned takeover of National Bank of Kingston reached near-completion but was halted three days before finalisation.
Later 20th century
In 1965, Barclays established a US affiliate, Barclays Bank of California in San Francisco.Barclaycard
Barclaycard
Barclaycard, part of Barclays Retail and Business Banking, is a global payment business. The Barclaycard was the first credit card introduced in the UK, coming into service in 1966. It enjoyed a monopoly until the introduction of the Access card in 1972....
, the first credit card in the UK, was launched in 1966 and in 1967, Barclays unveiled the world's first ATM
Automated teller machine
An automated teller machine or automatic teller machine, also known as a Cashpoint , cash machine or sometimes a hole in the wall in British English, is a computerised telecommunications device that provides the clients of a financial institution with access to financial transactions in a public...
cash machine at Enfield
Enfield Town
Enfield Town is the historic town centre of Enfield, formerly in the county of Middlesex and now in the London Borough of Enfield. It is north north-east of Charing Cross...
, north London. British actor Reg Varney
Reg Varney
Reginald Alfred "Reg" Varney was an English actor, most notable for his role as Stan Butler in 1970s TV sitcom On the Buses.-Early life:...
was the first one to use the ATM.
In 1969, the planned merger with Martins Bank
Martins Bank
Martins Bank Limited was a Liverpool-based British finanical services company that was taken over by Barclays Bank in 1969. The company has its origins in the 16th century and was said to have been founded by Sir Thomas Gresham, who began trading in Lombard Street under the sign of a grasshopper...
and Lloyds Bank
Lloyds Bank
Lloyds Bank Plc was a British retail bank which operated in England and Wales from 1765 until its merger into Lloyds TSB in 1995; it remains a registered company but is currently dormant. It expanded during the nineteenth and twentieth centuries and took over a number of smaller banking companies...
was blocked by the Mergers and Monopolies Commission but the acquisition of Martins Bank
Martins Bank
Martins Bank Limited was a Liverpool-based British finanical services company that was taken over by Barclays Bank in 1969. The company has its origins in the 16th century and was said to have been founded by Sir Thomas Gresham, who began trading in Lombard Street under the sign of a grasshopper...
on its own was allowed. Also that year the British Linen Bank
British Linen Bank
The British Linen Bank was a commercial bank based in Edinburgh, Scotland. It was acquired by the Bank of Scotland in 1969 and served as the Bank's merchant bank arm from 1977 until 1999.-Foundation:...
subsidiary was sold to the Bank of Scotland
Bank of Scotland
The Bank of Scotland plc is a commercial and clearing bank based in Edinburgh, Scotland. With a history dating to the 17th century, it is the second oldest surviving bank in what is now the United Kingdom, and is the only commercial institution created by the Parliament of Scotland to...
in exchange for a 25% stake, a transaction that became effective from March 1971.
In 1974, following the secondary banking crash, Barclays purchased Mercantile Credit Company.
In 1980, Barclays Bank International expanded its business to include commercial credit and took over American Credit Corporation, renaming it BarclaysAmerican.
Barclays became the first bank to re-open branches on Saturday mornings in 1982, twenty years after the practice ended. Two years later, in 1984, Barclays posted record profits.
The following year Barclays Bank and Barclays Bank International merged: as part of the corporate reorganisation, the former Barclays Bank PLC became a group holding company, renamed as Barclays PLC and UK retail banking
Retail banking
Retail banking is banking in which banking institutions execute transactions directly with consumers, rather than corporations or other banks. Services offered include: savings and transactional accounts, mortgages, personal loans, debit cards, credit cards, and so forth.-Types of...
was integrated under the former BBI, and renamed Barclays Bank PLC.
In 1985, Barclays introduced Connect, the first debit card
Debit card
A debit card is a plastic card that provides the cardholder electronic access to his or her bank account/s at a financial institution...
in the United Kingdom. The Connect brand is still being used on their debit cards today.
Sales and acquisitions
In 1986 Barclays sold its South African business operating under the Barclays National Bank name after protests against Barclays' involvement in South Africa and its apartheid government. Also that year Barclays bought de Zoete & Bevan and Wedd Durlacher to form BZW and to take advantage of the Big BangBig Bang (financial markets)
The phrase Big Bang, used in reference to the sudden deregulation of financial markets, was coined to describe measures, including abolition of fixed commission charges and of the distinction between stockjobbers and stockbrokers on the London Stock Exchange and change from open-outcry to...
on the London Stock Exchange
London Stock Exchange
The London Stock Exchange is a stock exchange located in the City of London within the United Kingdom. , the Exchange had a market capitalisation of US$3.7495 trillion, making it the fourth-largest stock exchange in the world by this measurement...
.
In 1988, Barclays sold Barclays Bank of California to Wells Fargo
Wells Fargo
Wells Fargo & Company is an American multinational diversified financial services company with operations around the world. Wells Fargo is the fourth largest bank in the U.S. by assets and the largest bank by market capitalization. Wells Fargo is the second largest bank in deposits, home...
Bank, N.A.
Edgar Pearce
Edgar Pearce
Edgar Eugene Pearce is a British convicted extortionist and bomber, who was convicted of the Mardi Gra bombings after admitting a three-year blackmail and terror campaign in the London area between December 1994 and April 1998....
, the "Mardi Gras Bomber", began a terror campaign against the bank and the supermarket chain Sainsbury's in 1994.
In 1996, Barclays bought Wells Fargo Nikko Investment Advisors (WFNIA) and merged it with BZW Investment Management to form Barclays Global Investors.
Two years later, in 1998, the BZW business was broken up and parts were sold to Credit Suisse First Boston
Credit Suisse First Boston
Credit Suisse First Boston was the former name of the banking firm Credit Suisse.-History:In 1978, Credit Suisse and First Boston Corporation formed a London-based 50-50 investment banking joint venture called the Financière Crédit Suisse-First Boston...
: Barclays retained the debt business which formed the foundation of what is now Barclays Capital.
In 1999, in an unusual move as part of the trend at the time for free ISPs, Barclays launched an internet service called Barclays.net: this entity was acquired by British Telecom in 2001.
The year 2000 saw the acquisition of Woolwich plc (formerly the Woolwich Building Society).
21st century
In 2003, Barclays bought the American credit card company Juniper Bank
Juniper Bank
Juniper Bank was founded in January 2000 by several former executives of First USA Bank. Richard Vague - CEO, and Jim Stewart - President, received the initial round of funding from Benchmark Capital....
from CIBC, re-branding it as "Barclays Bank Delaware". The same year saw the acquisition of Banco Zaragozano, the 11th Spanish bank.
Barclays took over sponsorship of the Premier League from Barclaycard
Barclaycard
Barclaycard, part of Barclays Retail and Business Banking, is a global payment business. The Barclaycard was the first credit card introduced in the UK, coming into service in 1966. It enjoyed a monopoly until the introduction of the Access card in 1972....
in 2004. In May 2005 Barclays moved its group headquarters from Lombard Street
Lombard Street, London
Lombard Street is a street in the City of London.It runs from the corner of the Bank of England at its north-west end, where it meets a major junction including Poultry, King William Street, and Threadneedle Street, south-east to Gracechurch Street....
in the City of London
City of London
The City of London is a small area within Greater London, England. It is the historic core of London around which the modern conurbation grew and has held city status since time immemorial. The City’s boundaries have remained almost unchanged since the Middle Ages, and it is now only a tiny part of...
to One Churchill Place
One Churchill Place
One Churchill Place is a 156 m tall skyscraper with 32 floors, serving as the headquarters of Barclays Bank. It is in the Docklands area of London in Canary Wharf...
in Canary Wharf
Canary Wharf
Canary Wharf is a major business district located in London, United Kingdom. It is one of London's two main financial centres, alongside the traditional City of London, and contains many of the UK's tallest buildings, including the second-tallest , One Canada Square...
. Also in 2005 Barclays sealed a £2.6bn takeover of Absa Group Limited
Absa Group Limited
The Absa Group Limited is the largest consumer bank in South Africa.- Overview :Absa is based in Johannesburg and listed on the JSE Limited and is one of South Africa's largest financial institutions...
, South Africa's largest retail bank, acquiring a 54% stake on 27 July 2005.
Then in 2006, Barclays purchased the HomEq Servicing Corporation for $469 million in cash from Wachovia
Wachovia
Wachovia was a diversified financial services company based in Charlotte, North Carolina. Before its acquisition by Wells Fargo in 2008, Wachovia was the fourth-largest bank holding company in the United States based on total assets...
Corp. That year also saw the acquisition of the financial website Comparetheloan and Barclays announcing plans to rebrand Woolwich branches as Barclays, migrating Woolwich customers onto Barclays accounts and migrating back-office processes onto Barclays systems – the Woolwich brand was to be used for Barclays mortgages.
In January 2007, Barclays announced that it has purchased the naming rights to the Barclays Center, a proposed 18,000-seat arena in Brooklyn, New York, where the New Jersey Nets
New Jersey Nets
The New Jersey Nets are a professional basketball team based in Newark, New Jersey. They are members of the Atlantic Division of the Eastern Conference in the National Basketball Association...
planned to relocate. Barclays cancelled its secondary listing on the Tokyo Stock Exchange
Tokyo Stock Exchange
The , called or TSE for short, is located in Tokyo, Japan and is the third largest stock exchange in the world by aggregate market capitalization of its listed companies...
in 2008.
Abandoned merger with ABN AMRO
In March 2007, Barclays announced plans to merge with ABN AMROABN AMRO
ABN AMRO Bank N.V. is a Dutch state-owned bank with headquarters in Amsterdam. It was re-established, in its current form, in 2009 following the acquisition and break up of ABN AMRO Group by a banking consortium consisting of Royal Bank of Scotland Group, Santander and Fortis...
, the largest bank in the Netherlands. However, on 5 October 2007 Barclays announced that it had abandoned its bid, citing inadequate support by ABN shareholders. Fewer than 80% of shares had been tendered to Barclay's cash-and-shares offer. This left the consortium led by Royal Bank of Scotland
Royal Bank of Scotland
The Royal Bank of Scotland Group is a British banking and insurance holding company in which the UK Government holds an 84% stake. This stake is held and managed through UK Financial Investments Limited, whose voting rights are limited to 75% in order for the bank to retain its listing on the...
free to proceed with its $99.9 cents counter-bid for ABN AMRO.
To help finance its bid for ABN AMRO, Barclays sold a 3.1% stake to China Development Bank
China Development Bank
The China Development Bank is a financial institution in the People's Republic of China under the direct jurisdiction of the State Council. It is the only bank in China whose governor is a full minister...
and a 3% stake to Temasek Holdings
Temasek Holdings
Temasek Holdings is an investment company owned by the government of Singapore. With an international staff of 380 people, it manages a portfolio of about S$193 billion at end of March 2011, focused primarily in Asia...
, the investment arm of the Singaporean government.
Also in 2007, Barclays agreed to purchase Equifirst Corporation from Regions Financial Corporation for $225 million. That year also saw Barclays Personal Investment Management announcing the closure of their operation in Peterborough and its re-siting to Glasgow, laying off nearly 900 members of staff.
Financing
On 30 August 2007, Barclays was forced to borrow £1.6bn ($3.2bn) from the Bank of EnglandBank of England
The Bank of England is the central bank of the United Kingdom and the model on which most modern central banks have been based. Established in 1694, it is the second oldest central bank in the world...
sterling standby facility. This is made available as a last-resort when banks are unable to settle their debts to other banks at the end of daily trading. Despite rumours about liquidity at Barclays, the loan was necessary due to a technical problem with their computerised settlement network. A Barclays spokesman was quoted as saying "There are no liquidity issues in the U.K markets. Barclays itself is flush with liquidity."
On 9 November 2007, Barclays shares dropped 9% and were even temporarily suspended for a short period of time, due to rumours of a £4.8bn ($10bn) exposure to bad debts in the US. However, a Barclays spokesman denied the rumours. Subsequent write-downs at the bank were announced to be £1 billion ($1.9 billion), much less than feared.
In July 2008, Barclays attempted to raise £4.5bn through a non-traditional rights issue to shore up its weakened Tier 1 capital ratio, which involved a rights offer to existing shareholders and the sale of a stake to Sumitomo Mitsui Banking Corporation
Sumitomo Mitsui Banking Corporation
is a Japanese bank based in Yurakucho, Chiyoda, Tokyo, Japan. It is a member of the Sumitomo Group and Mitsui Group. As of the year 2009, SMBC was the second largest bank in Japan in terms of assets.-History:...
. Only 19% of shareholders took up their rights leaving investors China Development Bank
China Development Bank
The China Development Bank is a financial institution in the People's Republic of China under the direct jurisdiction of the State Council. It is the only bank in China whose governor is a full minister...
and Qatar Investment Authority
Qatar Investment Authority
The Qatar Investment Authority is Qatar's sovereign wealth fund, specializing in domestic and foreign investment. It was founded in 2005 to manage the oil and natural gas surpluses by the Government of Qatar...
with increased holdings in the bank.
In 2008, Barclays bought the credit card brand Goldfish for $70 million gaining 1.7 million customers, and $3.9 billion in receivables. Barclays also bought a controlling stake in the Russian retail bank Expobank for $745 million. Later in the year Barclays commenced its Pakistan
Pakistan
Pakistan , officially the Islamic Republic of Pakistan is a sovereign state in South Asia. It has a coastline along the Arabian Sea and the Gulf of Oman in the south and is bordered by Afghanistan and Iran in the west, India in the east and China in the far northeast. In the north, Tajikistan...
operations with initial funding of $100 million.
Lehman Brothers acquisition
On 16 September 2008, Barclays announced its agreement to purchase, subject to regulatory approval, the investment-banking and trading divisions of Lehman BrothersLehman Brothers
Lehman Brothers Holdings Inc. was a global financial services firm. Before declaring bankruptcy in 2008, Lehman was the fourth largest investment bank in the USA , doing business in investment banking, equity and fixed-income sales and trading Lehman Brothers Holdings Inc. (former NYSE ticker...
, a United States financial conglomerate that had filed for bankruptcy. In the deal, Barclays will also acquired the New York headquarters building of Lehman Brothers.
On 20 September 2008, a revised version of the deal, a $1.35 billion (£700 million) plan for Barclays plc to acquire the core business of Lehman Brothers (mainly Lehman's $960 million Midtown Manhattan
Midtown Manhattan
Midtown Manhattan, or simply Midtown, is an area of Manhattan, New York City home to world-famous commercial zones such as Rockefeller Center, Broadway, and Times Square...
office skyscraper, with responsibility for 9,000 former employees), was approved. Manhattan
Manhattan
Manhattan is the oldest and the most densely populated of the five boroughs of New York City. Located primarily on the island of Manhattan at the mouth of the Hudson River, the boundaries of the borough are identical to those of New York County, an original county of the state of New York...
court bankruptcy Judge James Peck, after a 7 hour hearing, ruled: "I have to approve this transaction because it is the only available transaction. Lehman Brothers became a victim, in effect the only true icon to fall in a tsunami that has befallen the credit markets. This is the most momentous bankruptcy hearing I've ever sat through. It can never be deemed precedent for future cases. It's hard for me to imagine a similar emergency."
Luc Despins, the creditors committee counsel, said: "The reason we're not objecting is really based on the lack of a viable alternative. We did not support the transaction because there had not been enough time to properly review it." In the amended agreement, Barclays would absorb $47.4 billion in securities and assume $45.5 billion in trading liabilities. Lehman's attorney Harvey R. Miller
Harvey R. Miller
Harvey R. Miller is an American lawyer. The New York Times called him “the most prominent bankruptcy lawyer in the nation.” Born in New York City, Miller was admitted to bar in New York State in 1959...
of Weil, Gotshal & Manges
Weil, Gotshal & Manges
Weil, Gotshal & Manges is a prominent international law firm, one of the largest and most prestigious in the world with 1,200 lawyers and gross annual revenue in excess of $1.1 billion. The firm was founded in New York City in 1931 by Frank Weil, Sylvan Gotshal, and Horace Manges...
, said "the purchase price for the real estate components of the deal would be $1.29 billion, including $960 million for Lehman's New York headquarters and $330 million for two New Jersey data centers. Lehman's original estimate valued its headquarters at $1.02 billion but an appraisal from CB Richard Ellis this week valued it at $900 million." Further, Barclays will not acquire Lehman's Eagle Energy unit, but will have entities known as Lehman Brothers Canada Inc, Lehman Brothers Sudamerica, Lehman Brothers Uruguay and its Private Investment Management business for high net-worth individuals. Finally, Lehman will retain $20 billion of securities assets in Lehman Brothers Inc that are not being transferred to Barclays. Barclays had a potential liability of $2.5 billion to be paid as severance
Severance package
A severance package is pay and benefits an employee receives when they leave employment at a company. In addition to the employee's remaining regular pay, it may include some of the following:* An additional payment based on months of service...
, if it chooses not to retain some Lehman employees beyond the guaranteed 90 days.
2009 to present
ReutersReuters
Reuters is a news agency headquartered in New York City. Until 2008 the Reuters news agency formed part of a British independent company, Reuters Group plc, which was also a provider of financial market data...
later reported that the British government
HM Treasury
HM Treasury, in full Her Majesty's Treasury, informally The Treasury, is the United Kingdom government department responsible for developing and executing the British government's public finance policy and economic policy...
would inject £40 billion ($69 billion) into three banks including Barclays, which might seek over £7 billion. Barclays later confirmed that it rejected the Government’s offer and would instead raise £6.5 billion of new capital (£2 billion by cancellation of dividend and £4.5 billion from private investors).
In January 2009, the press reported that further capital may be required and that while the government might be willing to fund this, it may be unable to do so because the previous capital investment from the Qatari state was subject to a proviso that no third party might put in further money without the Qatar
Qatar
Qatar , also known as the State of Qatar or locally Dawlat Qaṭar, is a sovereign Arab state, located in the Middle East, occupying the small Qatar Peninsula on the northeasterly coast of the much larger Arabian Peninsula. Its sole land border is with Saudi Arabia to the south, with the rest of its...
is receiving compensation at the value the shares had commanded in October 2008. In March 2009, it was reported that in 2008, Barclays received billions of dollars from its insurance arrangements with AIG
AIG
AIG is American International Group, a major American insurance corporation.AIG may also refer to:* And-inverter graph, a concept in computer theory* Answers in Genesis, a creationist organization in the U.S.* Arta Industrial Group in Iran...
, including $8.5bn from funds provided by the United States to bail out AIG.
On 12 June 2009, Barclays sold its Global Investors unit, which includes its exchange traded fund business, iShares
IShares
iShares are a family of exchange-traded funds managed by BlackRock. The first iShares were known as WEBS but were since rebranded.Each iShares fund tracks a bond or stock market index...
, to BlackRock
BlackRock
BlackRock, Inc. is an American multinational investment management corporation and the world's largest asset manager. BlackRock is headquartered in Manhattan, New York City, New York, United States and is the leading provider of investment, advisory, and risk management solutions...
for $13.5bn. Standard Life sold Standard Life Bank plc to Barclays plc in October 2009. The sale was completed on 1 January 2010. On 11 November 2009, Barclays and First Data, a global technology provider of information commerce, have entered into an agreement according to which Barclays will migrate a range of card portfolios to First Data's issuing and consumer finance platform. On 13 February 2010, Barclays announced it would pay more than £2 billion in bonuses. In March 2011 it was reported that Barclays had overtaken Banco Santander to claim top spot as the UK's most complained against bank, with the country's official banking regulator, the Financial Services Authority
Financial Services Authority
The Financial Services Authority is a quasi-judicial body responsible for the regulation of the financial services industry in the United Kingdom. Its board is appointed by the Treasury and the organisation is structured as a company limited by guarantee and owned by the UK government. Its main...
having recorded 276,315 new customer complaints against Barclays Bank during the second half of 2010. Barclays nevertheless ranks only third in the UK among the mainstream clearing banks in terms of the number of its branches.
Inline with cut costs, Barclay has cut 1,400 jobs during the first half of 2011 and will cut another 1,600 jobs for the rest of 2011. Barclay has around 145,000 workforces.
In September 2011 Chief Executive officer Robert Diamond said that the bank is back on track to meet its target of achieving 13 percent return of equity by 2013.
Principal divisions and subsidiaries
- Barclays Bank PLC – UK retail clearing bank
- Barclays Bank Delaware (formerly Barclaycard US, originally Juniper Bank, acquired 2003)
- Barclays Corporate – Dealing with medium and larger corporate businesses worldwide.
- Barclays WealthBarclays WealthBarclays Wealth is a UK wealth manager providing international and private banking, advisory, fiduciary services, investment management and, through Barclays Stockbrokers, brokerage....
– Stockbrokers, OffshoreOffshore bankAn offshore bank is a bank located outside the country of residence of the depositor, typically in a low tax jurisdiction that provides financial and legal advantages. These advantages typically include:...
and Private bankPrivate bankingPrivate banking is banking, investment and other financial services provided by banks to private individuals investing sizable assets. The term "private" refers to the customer service being rendered on a more personal basis than in mass-market retail banking, usually via dedicated bank advisers... - Barclays Private Clients International Ltd. – subsidiary based in the Isle of ManIsle of ManThe Isle of Man , otherwise known simply as Mann , is a self-governing British Crown Dependency, located in the Irish Sea between the islands of Great Britain and Ireland, within the British Isles. The head of state is Queen Elizabeth II, who holds the title of Lord of Mann. The Lord of Mann is...
with branches in the Channel IslandsChannel IslandsThe Channel Islands are an archipelago of British Crown Dependencies in the English Channel, off the French coast of Normandy. They include two separate bailiwicks: the Bailiwick of Guernsey and the Bailiwick of Jersey... - Barclays Private EquityBarclays Private EquityBarclays Private Equity is the Private Equity division of Barclays Capital, the Investment Banking arm of Barclays plc. BPE have seven offices across four countries. Started in 1982 they have invested in over 350 businesses including Admiral Group and Dial-a-Phone. Typically €500m is invested per...
- BarclaycardBarclaycardBarclaycard, part of Barclays Retail and Business Banking, is a global payment business. The Barclaycard was the first credit card introduced in the UK, coming into service in 1966. It enjoyed a monopoly until the introduction of the Access card in 1972....
– Global credit card business - Barclaycard US – Separate from the Barclaycard global operation, this is the corporation's US credit card operation (formerly known as "Juniper Bank"). Issues branded credit cards such as US Airways, Midwest Airlines, Frontier Airlines MasterCardMasterCardMastercard Incorporated or MasterCard Worldwide is an American multinational financial services corporation with its headquarters in the MasterCard International Global Headquarters, Purchase, Harrison, New York, United States...
, Airtran Airways Visa card, and Apple Store Visa and MasterCard accounts. - Barclays CapitalBarclays CapitalBarclays Capital is a global British investment bank. It is the investment banking division of Barclays plc which has a balance sheet of over £1.2 trillion . Barclays Capital provides financing and risk management services to large companies, institutions and government clients. It is a primary...
– Investment bank - Barclays Africa
- Barclays Spain (550 branches)
- Barclays Portugal (162 branches)
- Barclays France
- Barclays Morocco
- Barclays Bank LLC (Russia)
- Barclays Pakistan
- Absa Group LimitedAbsa Group LimitedThe Absa Group Limited is the largest consumer bank in South Africa.- Overview :Absa is based in Johannesburg and listed on the JSE Limited and is one of South Africa's largest financial institutions...
(South Africa) - Firstplus Financial GroupFirstPlus Financial GroupFirstPlus Financial Group is a Texas-based mortgage company traded under the symbol FPFX. In 2011, a number of indictments and other legal actions showed that the firm had been taken over by Lucchese and Phialdelphia Mafia families by the use of threats and violence...
PLC - Barclays Partner Finance (formerly ClydesdaleClydesdaleClydesdale was formerly one of nineteen local government districts in the Strathclyde region of Scotland.The district was formed by the Local Government Act 1973 from part of the former county of Lanarkshire: namely the burghs of Biggar and Lanark and the First, Second and Third Districts...
Financial Services) - Barclays India
- Barclays Technologies Centre China
- Barclays Technologies Centre India
- PT Bank Barclays Indonesia, formerly known as PT Bank Akita (due to be rebranded Barclays Bank Indonesia)
- Barclays Croatia
- Barclays Shared Services (BSS)
Organisational structure
Barclays is headed by Marcus AgiusMarcus Agius
Marcus Ambrose Paul Agius is a British financier and businessman, currently the Chairman of Barclays. He has also been appointed the senior non-executive director on the BBC's new executive board.-Biography:...
, the Group Chairman, who joined the Board on 1 September 2006 and succeeded Matthew Barrett
Matthew Barrett
Matthew William Barrett, is an Irish Canadian banker who until 2006 was the Chairman of Barclays Bank.Born in County Kerry, Ireland, he attended the Christian Brothers School in Kells, County Meath, and attended the Harvard Business School Advanced Management Programme in 1981.He started his...
as Chairman from 1 January 2007. Agius is also the senior executive Director of the BBC and was formerly Chairman of BAA PLC
BAA plc
BAA Ltd. is the Spanish-owned operator of six British airports and Naples Airport in Italy, making the company one of the largest transport companies in the world. BAA stems from British Airports Authority and is owned by a consortium led by Grupo Ferrovial, a Spanish firm specialising in...
, Chairman of Lazard in London and a Deputy Chairman of Lazard LLC until 31 December 2006.
Reporting directly to the Group Chairman is Robert Diamond
Robert Diamond
Robert Edward "Bob" Diamond, Jr. is an American banker, currently Group Chief Executive of British bank, Barclays Plc. He is also Chief Executive of Corporate & Investment Banking and Wealth Management, comprising Barclays Capital, Barclays Corporate and Barclays Bank...
, the Group Chief Executive, who is responsible for the strategic direction and planning of all Barclays operations. John Silvester Varley was appointed to the role in September 2004 prior to which he served as Deputy Chief Executive (January–September 2004) and Group Finance Director (2000–2003).
In November 2009, John Varley realigned Barclays' businesses into Global Retail Banking and Corporate and Investment Banking and Wealth Management. Global Retail Banking comprises UK Retail Banking, Barclaycard, the retail operations in Western Europe and Emerging Markets businesses, and retail operations and technology. Corporate and Investment Banking and Wealth Management comprises Barclays Capital, Barclays Commercial Bank and Barclays Wealth. This resulted in certain changes to the leadership team and an expansion of the Group Executive Committee (ExCo).
Board of Directors and Executive Committee
- Bob DiamondBob DiamondBob Diamond may refer to:*Bob Diamond , a Marvel Comics character*Bobby Diamond California civil and criminal law attorney who was a child star and young-adult actor of the 1950s and '60s...
– Group Chief Executive, Barclays PLC. - Chris Lucas – Group Finance Director, Barclays PLC.
- Antony Jenkins – Chief Executive, Global Retail Banking
- Jerry del Missier – Co-Chief Executive, Barclays Corporate & Investment Banking.
- Rich Ricci – Co-Chief Executive, Barclays Corporate & Investment Banking.
- Tom Kalaris – Chief Executive, Barclays Wealth Management.
- Maria RamosMaria Ramos-Early life:Born Maria da Conceição das N. C. Ramos on 22 February 1959 in Lisbon, Portugal, Ramos went on to study economics and taught the subject at the University of South Africa and the University of the Witwatersrand...
– CEO, Absa. - Mark Harding [1] – Group General Counsel, Barclays PLC.
- Robert Le Blanc [2] – Chief Risk Officer, Barclays PLC.
- Sally Bott [3] – Group Human Resources Director, Barclays PLC.
[1] reporting to Robert Diamond.
[2] reporting to Chris Lucas.
[3] responsible for HR, Strategy, Corporate Affairs, Brand & Marketing and reporting to Robert E. Diamond, Jr.
The company has no COO or CIO. Paul Idzik, the former COO, completed an organisational redesign that saw IT functions devolved to the core business divisions – Global Retail & Commercial Banking and Investment Banking – and, following completion Idzik resigned from his post.
The Board Members are:
- Marcus AgiusMarcus AgiusMarcus Ambrose Paul Agius is a British financier and businessman, currently the Chairman of Barclays. He has also been appointed the senior non-executive director on the BBC's new executive board.-Biography:...
– Chairman - Bob DiamondBob DiamondBob Diamond may refer to:*Bob Diamond , a Marvel Comics character*Bobby Diamond California civil and criminal law attorney who was a child star and young-adult actor of the 1950s and '60s...
- Chief Executive, Barclays PLC - Chris Lucas - Group Finance Director
- David BoothDavid BoothDavid Booth is an American professional ice hockey player currently playing for the Vancouver Canucks of the National Hockey League . Following his sophomore year with the Michigan State Spartans, he was selected 53rd overall by the Florida Panthers in the 2004 NHL Entry Draft...
– Non Executive Director - Sir Richard BroadbentRichard BroadbentSir Richard Broadbent KCB is a British businessman based in the UK. He is currently Deputy Chairman and Senior Independent Director of Barclays plc where he also chairs the Remuneration Committee and sits on the Nominations Committee...
– Non Executive Director - Alison Carnwarth – Non Executive Director
- Fulvio ContiFulvio ContiFulvio Conti is an italian manager.He joined Enel in 1999 as Chief Financial Officer. As CEO he finalized the acquisition of the Slovak utility, Slovenkse Elektrarne and he successfully achieved the takeover of Endesa, the leading power company in Spain and Latin America as well as the takeover of...
– Non Executive Director - Simon FraserSimon FraserSimon Fraser may refer to:Universities:* Simon Fraser University, a university named for the explorer in British Columbia* Simon Fraser Clan, the athletic program of Simon Fraser UniversityLords Lovat:...
– Non Executive Director - Reuben Jeffery IIIReuben Jeffery IIIReuben Jeffery III is the former United States Under Secretary of State for Economic, Business, and Agricultural Affairs, having been appointed to that position by United States President George W. Bush in June 2007....
– Non Executive Director - Sir Andrew Likierman– Non Executive Director
- Dambisa MoyoDambisa MoyoDr. Dambisa Moyo is an international economist and New York Times best-selling author of both Dead Aid: Why Aid is Not Working and How There is a Better Way For Africa, published in 2009, and How the West Was Lost: Fifty Years of Economic Folly - And the Stark Choices that Lie Ahead, published in...
– Non Executive Director - Sir Michael Rake – Non Executive Director
- Sir John Sunderland – Non Executive Director
Branches
Barclays has over 1800 UK high street branches (including former Woolwich branches) and it has also joined up with the Post Office Ltd to provide personal banking services to customers who live near a Post Office branch and those who need financial services such as secured or unsecured loans.Worldwide, Barclays has over 4,750 branches in over 50 countries.
Most Barclays branches have 24/7 cash machines. Barclays' customers and customers of many other banks can use Barclays ATMs for free in the UK, however, in other parts of the world there maybe small fees charged, for instance in Ghana Barclays charge gh¢0.25 per withdrawal from their ATMs and gh¢1.00 when the card is used on other bank's ATMS
Barclays Capital is a strong investment arm owned by Barclays Bank PLC. Barclays Capital had created an investment funds business that handles billions of pounds daily, iShares. After much debate, Barclays president Bob Diamond, along with other Barclays bosses chose to sell the iShares business to further boost capital. The preliminary price for the business is £3billion, although Barclays has the flexibility to sell at a higher price, should a bidder show interest before the selling deadline.
Barclays Corporate, another subsidiary of the Barclay's group provides banking solutions to organisations with an annual turnover of more than £5 million. These solutions include Deposits and Liquidity, Cash Management and Trade, Financing, Foreign Exchange, Risk Management and Online Banking. It serves over 8000 companies spread across 23 countries worldwide.
Global ATM Alliance
Barclays is a member of the Global ATM AllianceGlobal ATM Alliance
The Global ATM Alliance is a joint venture of several major international banks that allows customers of their banks to use their ATM card or debit card at another bank within the Global ATM Alliance with no International ATM Access fees. However, other fees, such as an international transaction or...
, a joint venture of several major international banks that allows customers of the banks to use their ATM
Automated teller machine
An automated teller machine or automatic teller machine, also known as a Cashpoint , cash machine or sometimes a hole in the wall in British English, is a computerised telecommunications device that provides the clients of a financial institution with access to financial transactions in a public...
card or check card
Check card
The term check card can refer to:* An identification card issued by a retailer allowing the holder to tender payment by check. Such cards were commonly issued in the United States by supermarkets and other retailers before the widespread use of debit cards....
at another bank within the Global ATM Alliance with no ATM access fees when traveling internationally. Other participating banks are Bank of America
Bank of America
Bank of America Corporation, an American multinational banking and financial services corporation, is the second largest bank holding company in the United States by assets, and the fourth largest bank in the U.S. by market capitalization. The bank is headquartered in Charlotte, North Carolina...
(United States), BNP Paribas
BNP Paribas
BNP Paribas S.A. is a global banking group, headquartered in Paris, with its second global headquarters in London. In October 2010 BNP Paribas was ranked by Bloomberg and Forbes as the largest bank and largest company in the world by assets with over $3.1 trillion. It was formed through the merger...
(France), UkrSibbank
UkrSibbank
«UkrSibbank» - full name Public joint-stock company “UkrSibbank”. It was registered on June 18, 1990. As of today, JSC «UkrSibbank» is the third largest bank of Ukraine, the second among foreign-owned banks, and acts as a financial supermarket....
(Ukraine), China Construction Bank
China Construction Bank
China Construction Bank is one of the 'big four' banks in the People's Republic of China. To date, it is ranked as the nation's second largest and the second largest bank in the world by market capitalization and 12th largest company in the world. The bank has approximately 13,629 domestic branches...
(China), Deutsche Bank
Deutsche Bank
Deutsche Bank AG is a global financial service company with its headquarters in Frankfurt, Germany. It employs more than 100,000 people in over 70 countries, and has a large presence in Europe, the Americas, Asia Pacific and the emerging markets...
(Germany), Santander Serfin (Mexico), Scotiabank
Scotiabank
The Bank of Nova Scotia , commonly known as Scotiabank , is the third largest bank in Canada by deposits and market capitalization. It serves some 18.6 million customers in more than 50 countries around the world and offers a broad range of products and services including personal, commercial,...
(Canada) and Westpac
Westpac
Westpac , is a multinational financial services, one of the Australian "big four" banks and the second-largest bank in New Zealand....
(Australia and New Zealand).
Sponsorships
Barclaycard
Barclaycard, part of Barclays Retail and Business Banking, is a global payment business. The Barclaycard was the first credit card introduced in the UK, coming into service in 1966. It enjoyed a monopoly until the introduction of the Access card in 1972....
brand) and, from 2006, the Churchill Cup
Churchill Cup
The Churchill Cup was an annual rugby union tournament, held in June, contested by representative men's teams from Canada, England, the United States, and other invited teams from a wide array of countries....
. Barclays also sponsored The Football League
The Football League
The Football League, also known as the npower Football League for sponsorship reasons, is a league competition featuring professional association football clubs from England and Wales. Founded in 1888, it is the oldest such competition in world football...
from 1987 until 1993, succeeding Today newspaper
Today (UK newspaper)
Today was a national newspaper in the United Kingdom, which was published between 1986 and 1995.-History:Today, with the American newspaper USA Today as inspiration, launched on Tuesday, 4 March 1986, with the front page headline, "Second Spy Inside GCHQ". At 18 pence, it was a middle-market...
and being replaced by Endsleigh Insurance
Endsleigh Insurance
Endsleigh Insurance is a Cheltenham-based UK insurance intermediary specialising in the student and graduate markets. It is the preferred insurer for several unions and professional associations....
. It also sponsored the 2008 Dubai
Dubai
Dubai is a city and emirate in the United Arab Emirates . The emirate is located south of the Persian Gulf on the Arabian Peninsula and has the largest population with the second-largest land territory by area of all the emirates, after Abu Dhabi...
Tennis Championships.
In 2009 it became the official sponsor of the ATP World Tour Finals.
Barclays is a major sponsor of professional golf tournaments worldwide, the Barclays Scottish Open on the PGA European Tour
PGA European Tour
The PGA European Tour is an organization which operates the three leading men's professional golf tours in Europe: the elite European Tour, the European Seniors Tour and the developmental Challenge Tour. Its headquarters are at Wentworth Club in Virginia Water, Surrey, England...
at Loch Lomond since 2002, the Barclays Classic on the PGA Tour from 2005–2006, which became The Barclays in 2007, the first of four playoff tournaments for the FedEx Cup
FedEx Cup
The FedEx Cup is a championship trophy for the PGA Tour. Its introduction marked the first time that men's professional golf had a playoff system. Announced in November 2005, it was first awarded in 2007 after a NASCAR-like points race. Bill Haas is the current champion...
, and since 2006 Barclays has been title sponsor to the Singapore Open
Singapore Open (golf)
The Singapore Open is a golf tournament in Singapore that has been sanctioned by the Asian Tour from that tour's inception in 1995 and by the European Tour since 2009. It was founded in 1961 and was staged annually until 2001, when it was won by Thaworn Wiratchant. It was then cancelled for lack of...
, the richest national open in Asia, and since 2009 has been co-sanctioned with the European Tour. Barclays also sponsors PGA Tour
PGA Tour
The PGA Tour is the organizer of the main men's professional golf tours in the United States and North America...
star Phil Mickelson
Phil Mickelson
Philip Alfred Mickelson is an American professional golfer. He has won four major championships and a total of 39 events on the PGA Tour. He has reached a career high world ranking of 2nd in multiple years. He is nicknamed "Lefty" for his left-handed swing, even though he is otherwise right-handed...
and European Tour player Darren Clarke
Darren Clarke
Darren Christopher Clarke is a professional golfer from Northern Ireland who currently plays on the European Tour and has previously played on the PGA Tour. He has won 22 tournaments worldwide on a number of golf's main tours including the European Tour, the PGA Tour, the Sunshine Tour and the...
.
Involvement with South Africa under apartheid
Barclays bank was known overseas in the financial industry in the 1980s as 'Boerclaysbank', due to its continued involvement in South Africa during the apartheid regime. A student boycott of the bank led to a drop in its share of the UK student market from 27 per cent to 15 per cent by the time it pulled out in 1986.In 2006, a South African activist group, the Jubilee South Africa backed Khulumani Support Group, sought reparations
Reparation (legal)
In jurisprudence, reparation is replenishment of a previously inflicted loss by the criminal to the victim. Monetary restitution is a common form of reparation...
from Barclays in addition to Citigroup
Citigroup
Citigroup Inc. or Citi is an American multinational financial services corporation headquartered in Manhattan, New York City, New York, United States. Citigroup was formed from one of the world's largest mergers in history by combining the banking giant Citicorp and financial conglomerate...
, BP
BP
BP p.l.c. is a global oil and gas company headquartered in London, United Kingdom. It is the third-largest energy company and fourth-largest company in the world measured by revenues and one of the six oil and gas "supermajors"...
, Royal Dutch Shell
Royal Dutch Shell
Royal Dutch Shell plc , commonly known as Shell, is a global oil and gas company headquartered in The Hague, Netherlands and with its registered office in London, United Kingdom. It is the fifth-largest company in the world according to a composite measure by Forbes magazine and one of the six...
, Ford, GM
General Motors
General Motors Company , commonly known as GM, formerly incorporated as General Motors Corporation, is an American multinational automotive corporation headquartered in Detroit, Michigan and the world's second-largest automaker in 2010...
, and Deutsche Bank
Deutsche Bank
Deutsche Bank AG is a global financial service company with its headquarters in Frankfurt, Germany. It employs more than 100,000 people in over 70 countries, and has a large presence in Europe, the Americas, Asia Pacific and the emerging markets...
for their roles indirectly supporting the apartheid government in South Africa during the 1970s and 1980s. The legal proceedings are being heard at the Second Circuit Court of Appeals
United States Court of Appeals for the Second Circuit
The United States Court of Appeals for the Second Circuit is one of the thirteen United States Courts of Appeals...
in New York, and the South African Ministry of Justice
Brigitte Mabandla
Brigitte Sylvia Mabandla is the South African minister of public enterprises; and formerly the minister of justice and constitutional development.In 1979, she graduated in law from the University of Zambia.-References:...
is seeking dismissal of the case on the grounds that it undermines its national sovereignty.
Financial support for the government in Zimbabwe
Barclays helps to fund President Robert Mugabe'sRobert Mugabe
Robert Gabriel Mugabe is the President of Zimbabwe. As one of the leaders of the liberation movement against white-minority rule, he was elected into power in 1980...
government in Zimbabwe
Zimbabwe
Zimbabwe is a landlocked country located in the southern part of the African continent, between the Zambezi and Limpopo rivers. It is bordered by South Africa to the south, Botswana to the southwest, Zambia and a tip of Namibia to the northwest and Mozambique to the east. Zimbabwe has three...
. The most controversial of a set of loans provided by Barclays is the £30m it gives to help sustain land reforms that saw Mugabe seize white-owned farmland and drive more than 100,000 black workers from their homes. Opponents have called the bank's involvement a 'disgrace' and an 'insult' to the millions who have suffered human rights abuses. Barclays spokesmen say the bank has had customers in Zimbabwe for decades and abandoning them now would make matters worse, 'We are committed to continuing to provide a service to those customers in what is clearly a difficult operating environment".
Barclays also provides two of Mugabe’s associates with bank accounts, ignoring European Union sanctions on Zimbabwe. The men are Elliot Manyika and minister of public service Nicholas Goche. Barclays has defended its position by insisting that the EU rules do not apply to its 67%-owned Zimbabwean subsidiary because it was incorporated outside the EU.
Accusations of money laundering
In March 2009, Barclays was accused of violating international anti-money laundering laws. According to the NGO Global WitnessGlobal Witness
Global Witness is an international NGO established in 1993 that works to break the links between natural resource exploitation, conflict, poverty, corruption, and human rights abuses worldwide. The organisation has offices in London and Washington, D.C.. Global Witness states that it does not have...
, the Paris branch of Barclays held the account of Equatorial Guinean President Teodoro Obiang
Teodoro Obiang Nguema Mbasogo
Teodoro Obiang Nguema Mbasogo is an Equatoguinean politician who has been President of Equatorial Guinea since 1979. He ousted his uncle, Francisco Macías Nguema, in an August 1979 military coup and has overseen Equatorial Guinea's emergence as an important oil producer, beginning in the 1990s...
's son, Teodorin Obiang, even after evidence that Obiang had siphoned oil revenues from government funds emerged in 2004. According to Global Witness, Obiang purchased a Ferrari
Ferrari
Ferrari S.p.A. is an Italian sports car manufacturer based in Maranello, Italy. Founded by Enzo Ferrari in 1929, as Scuderia Ferrari, the company sponsored drivers and manufactured race cars before moving into production of street-legal vehicles as Ferrari S.p.A. in 1947...
and maintains a mansion in Malibu with the funds from this account.
A 2010 report by the Wall Street Journal described how Credit Suisse
Credit Suisse
The Credit Suisse Group AG is a Swiss multinational financial services company headquartered in Zurich, with more than 250 branches in Switzerland and operations in more than 50 countries.-History:...
, Barclays, Lloyds Banking Group
Lloyds Banking Group
Lloyds Banking Group plc is a major British financial institution, formed through the acquisition of HBOS by Lloyds TSB in 2009. As at February 2010, HM Treasury held a 41% shareholding through UK Financial Investments Limited . The Group headquarters is located at 25 Gresham Street in London, with...
, and other banks were involved in helping the Alavi Foundation
Alavi Foundation
The Alavi Foundation is a private not-for-profit organization based in the United States.The Alavi Foundation is the successor organization to the Pahlavi Foundation, a nonprofit group used by Mohammad Reza Pahlavi to advance Iran's charitable interests in America...
, Bank Melli
Bank Melli Iran
Bank Melli Iran , also called the National Bank of Iran, is the first national Iranian bank. The bank was established in 1927 by the order of the Majlis and since then has consistently been one of the most influential Iranian banks.In 1931 the Iranian Majlis authorized the bank to print and...
, the Iranian government, and/or others circumvent US laws banning financial transactions with certain states. They did this by 'stripping' information out of wire transfers, thereby concealing the source of funds. Barclays settled with the government for $298,000,000.
Senior management bonuses
Robert DiamondRobert Diamond
Robert Edward "Bob" Diamond, Jr. is an American banker, currently Group Chief Executive of British bank, Barclays Plc. He is also Chief Executive of Corporate & Investment Banking and Wealth Management, comprising Barclays Capital, Barclays Corporate and Barclays Bank...
, the US-born head of Barclays Capital
Barclays Capital
Barclays Capital is a global British investment bank. It is the investment banking division of Barclays plc which has a balance sheet of over £1.2 trillion . Barclays Capital provides financing and risk management services to large companies, institutions and government clients. It is a primary...
, was set to receive a £14.8m bonus in 2008, as Barclays Capital made a profit of £2.3bn in the year, despite the subprime mortgage crisis
Subprime mortgage crisis
The U.S. subprime mortgage crisis was one of the first indicators of the late-2000s financial crisis, characterized by a rise in subprime mortgage delinquencies and foreclosures, and the resulting decline of securities backed by said mortgages....
in the US forcing the division to take a £1.6bn hit in 2007.
Tax avoidance
In March 2009, Barclays obtained an injunction against The GuardianThe Guardian
The Guardian, formerly known as The Manchester Guardian , is a British national daily newspaper in the Berliner format...
to remove from its website confidential leaked documents describing how SCM, Barclays' structured capital markets division, planned to use more than £11bn of loans to create hundreds of millions of pounds of tax benefits, via "an elaborate circuit of Cayman Islands companies, US partnerships and Luxembourg subsidiaries". In an editorial on the issue, the Guardian pointed out that, due to the mismatch of resources, tax-collectors (HMRC) have now to rely on websites such as WikiLeaks
Wikileaks
WikiLeaks is an international self-described not-for-profit organisation that publishes submissions of private, secret, and classified media from anonymous news sources, news leaks, and whistleblowers. Its website, launched in 2006 under The Sunshine Press organisation, claimed a database of more...
to obtain such documents, and indeed the documents in question have now appeared on WikiLeaks
Wikileaks
WikiLeaks is an international self-described not-for-profit organisation that publishes submissions of private, secret, and classified media from anonymous news sources, news leaks, and whistleblowers. Its website, launched in 2006 under The Sunshine Press organisation, claimed a database of more...
. Separately, another Barclays whistleblower revealed several days later that the SCM transactions had produced between £900m and £1bn in tax avoidance in one year, adding that "The deals start with tax and then commercial purpose is added to them."
Links to the arms trade
In December 2008, the British anti-poverty charity War on WantWar on Want
War on Want is an anti-poverty charity based in London, England. It seeks to highlight the needs of poverty-stricken areas around the world and lobbies governments and international agencies to tackle problems as well as raising public awareness of the concerns of developing nations while...
released a report documenting the extent to which Barclays and other UK commercial banks invest in, provide banking services for and make loans to arms companies. The charity writes in its report that Barclays is the world's largest arms investor, holding £7.3 billion in shares in the arms manufacturers. The report also details Barclays' dealings with known producers of cluster munitions and depleted uranium
Depleted uranium
Depleted uranium is uranium with a lower content of the fissile isotope U-235 than natural uranium . Uses of DU take advantage of its very high density of 19.1 g/cm3...
.
Nuclear power
Barclays shares, on par with CitigroupCitigroup
Citigroup Inc. or Citi is an American multinational financial services corporation headquartered in Manhattan, New York City, New York, United States. Citigroup was formed from one of the world's largest mergers in history by combining the banking giant Citicorp and financial conglomerate...
, the second and third place as biggest bank in the nuclear sector
Nuclear power
Nuclear power is the use of sustained nuclear fission to generate heat and electricity. Nuclear power plants provide about 6% of the world's energy and 13–14% of the world's electricity, with the U.S., France, and Japan together accounting for about 50% of nuclear generated electricity...
, with over € 11,4 billion in investments. BNP Paribas
BNP Paribas
BNP Paribas S.A. is a global banking group, headquartered in Paris, with its second global headquarters in London. In October 2010 BNP Paribas was ranked by Bloomberg and Forbes as the largest bank and largest company in the world by assets with over $3.1 trillion. It was formed through the merger...
is, according to Profundo, number one, with more than € 13,5 billion.
Food speculation
Barclays' investment banking division, Barclays CapitalBarclays Capital
Barclays Capital is a global British investment bank. It is the investment banking division of Barclays plc which has a balance sheet of over £1.2 trillion . Barclays Capital provides financing and risk management services to large companies, institutions and government clients. It is a primary...
, is one of the world's largest speculator on food commodities, along with Goldman Sachs
Goldman Sachs
The Goldman Sachs Group, Inc. is an American multinational bulge bracket investment banking and securities firm that engages in global investment banking, securities, investment management, and other financial services primarily with institutional clients...
and Morgan Stanley
Morgan Stanley
Morgan Stanley is a global financial services firm headquartered in New York City serving a diversified group of corporations, governments, financial institutions, and individuals. Morgan Stanley also operates in 36 countries around the world, with over 600 offices and a workforce of over 60,000....
. A report by World Development Movement
World Development Movement
The World Development Movement is a membership organisation in the United Kingdom which campaigns on issues of global justice and development in the Global South....
published in April 2011, shows that Barclays makes up to £340 million a year from speculating on food, making it the largest food speculator in the UK.
Conflicts of interest
In a 2011 Delaware Chancery Court decision, Barclays was criticized for failing to disclose conflicts of interest to its client, Del Monte, in connection with Del Monte's buyout, which was led by KKR. Barclays subsequently agreed to pay $24 million and give up a $22 million fee from Del Monte, as part of a settlement of a lawsuit brought on behalf of Del Monte shareholders.See also
- Barclays Bank CanadaBarclays Bank Canada-1929-1956:Barclays Bank of Canada was a unit of Barclays Bank PLC. The Canadian unit was incorporated in 1929 in Montreal, QC with office later established in Toronto.Like the other Canadian chartered banks, it issued its own paper money...
- European Financial Services RoundtableEuropean Financial Services RoundtableThe European Financial Services Roundtable is a European organization, located in Brussels, Belgium, of financial service companies to provide a voice on policies of the European Union related to financial matters...
- List of banks in the United Kingdom
- PINsentryChip Authentication Programthumb|right|250px|A GemAlto EZIO CAP Device Whitelabeled as Barclays PINSentryThe Chip Authentication Program is a MasterCard initiative and technical specification for using EMV banking smartcards for authenticating users and transactions in online and telephone banking. It was also adopted by...