Barclays share price: Bank agrees sale of US wealth management arm

on Jun 8, 2015
Updated: Oct 21, 2019

Barclays’ (LON:BARC) today announced that it had signed an agreement to sell its Wealth & Investment Management franchise in the US to Stifel Financial Corp.

The transaction is targeted to close in mid-November, subject to regulatory approvals and customary conditions. As part of the deal, Stifel will be the US private wealth distribution partner of Barclays’ equities and credit new issue securities in the US.
The companies did not disclose the value of the deal, but Barclays said in a statement on Monday that the sale would have “minimal impact” on its finances. Credit Suisse analysts have previously estimated that the US wealth business could fetch up to $250 million.
Separately, Barclays announced on Friday the settlement of its long-running lawsuit against the trustee liquidating Lehman Brothers’ brokerage unit. Under the agreement, the British lender will receive all except $80 million of the $1.1bn assets, which were disputed by the trustee appointed to deal with the aftermath of Lehman’s 2008 demise, the UK bank said in a statement.
The resolution of the dispute, pending an approval by Manhattan’s federal Bankruptcy Court, means that Barclays is set to report a $750 million pre-tax gain for the first six months of 2015 when it announces its interim results on July 29. The gain will not affect the group’s underlying earnings — the measure most closely watched by analysts — but it will underpin its capital position at a time when chief executive Antony Jenkins is under pressure to show improved performance. The CEO has been seeking ways to shore up earnings, cutting thousands of jobs and shrinking securities operations.
Barclays’ share price has been subdued so far today. By 4:25 BST, the stock had fallen 0.77 percent to stand at 263.40p.
As of 15:03 BST, Monday, 08 June, Barclays share price is 262.70p.

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