|
In a
submission to the U.S. Federal Reserve outlining plans for its
so-called "living will" released on Monday, Barclays said it
expects to incur further costs from the need to set up an
intermediate holding company for its U.S. business by July 2016.
Those requirements, in particular a need to meet U.S. leverage
rules, "are likely to increase the operating costs and capital
requirements and/or require changes to the business mix of
Barclays' U.S. operations," the bank said.
It said implementation of the 'Volcker Rule', which bans
proprietary trading, will also require it to develop an
extensive compliance and monitoring program inside and outside
the United States, and "it is therefore expected that compliance
costs will increase".
Barclays said it plans to shrink the size of its U.S.
broker-deal unit Barclays Capital Inc. to $185-215 billion by
July 2016, from $248 billion at the end of 2014 and as much as
$521 billion in 2010.
"Barclays has a global recovery planning process in place that
includes a range of feasible options available to manage the
viability of the group during stressed conditions," it said in
its submission.
Barclays said it had addressed shortcomings identified by U.S.
regulators in its 2013 'living will' submission.
(Editing by Carmel Crimmins)
[© 2015 Thomson Reuters. All rights
reserved.] Copyright 2015 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.
 |
|
