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Barclays' CEO: funds set aside to settle forex probe not enough
[LONDON] The 500 million pounds (US$783.70 million) Barclays PLC set aside to settle allegations of rigging the foreign exchange market will not be enough, the bank's Chief Executive Antony Jenkins said in an interview to Sky News. "My expectation is it will be a bigger number than that,"Jenkins replied when asked whether the amount would be sufficient. The London-based bank pulled out of a settlement last month because of complications with its New York-based regulator Department of Financial Services, people familiar with the matter said.
However, Jenkins was hopeful of settling the probe with regulators "in the course of next year", Sky News reported.
He added that Barclays' bonuses would attract fewer headlines this season. "If a business performs, we'll pay; if it doesn't, we'll pay accordingly. It'll be much less controversial," Jenkins said in an interview to Sky News.
Jenkins signaled bonuses were likely to be cut to reflect an expected drop in profits at its investment bank. "I do not expect to be in a situation where profits are down and the bonus pool is up," he told the Financial Times in a separate interview. He said the bank should deliver on its targets on capital and leverage ahead of its 2016 goal.
Jenkins also told the FT banks now had to selectively choose where to invest and compete, due not just to capital constraints, but also to the need for vast investment in technology. "The universal banking model is dead," he told the paper.
A spokesman for Barclays said the reported comments were accurate.