Financial Biz Recap: Citigroup’s Trading Manipulation Costs, Barclays Earnings
Barclays (NYSE:BCS) fiscal year 2011 net attributable profit of 3 billion pounds ($4.75 billion) is down from 3.56 billion ($5.63 billion) in 2010 on “challenging” market conditions. Net interest income is down to 12.2 billion pounds ($19.31 billion) from 12.52 billion pounds ($19.81 billion). The company is raising its cost-reduction target to 2 billion pounds ($3.17 billion) and cutting its bonus pool by 26%.
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Citigroup (NYSE:C) took a loss of at least $50 million over alleged attempts by traders to manipulate inter-bank lending rates. The bank reported the activity to regulators, the FT reports. Numerous banks are being investigated. Traders at RBS (NYSE:RBS), Deutsche Bank (NYSE:DB), UBS and JPMorgan Chase & Co (NYSE:JPM) are being fired, suspended or placed on leave.
Bank of America (NYSE:BAC) delays the launch of its mobile deposit product until H2 in a move that will likely disappoint a portion of its 5 million mobile banking customers expecting the time-saving service in second quarter. The question remains, is this a tech issue or is the bank waiting for a better climate to launch a service that could include fees after suffering a harsh public backlash over debit card fees?
State Street (NYSE:STT) secured a Buy rating from Nomura and a price target of $40. Analyst Glenn Schorr says that the firm is well positioned and expects above-average growth, but warns of cyclical headwinds that include net interest income and FX.
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