Fox Business
Expand
Browse All Video
Watch Live

You're watching...

Gasparino: Barclays Could Break Up

Details

  • Description

    FBN's Charlie Gasparino argues a break-up of Barclays is possible in wake of the Libor scandal.

  • Duration 4:25
  • Date

Clips

Also in this playlist...

Charlie Breaks It

Auto-advance: ON

Auto-advance
View All

Transcript

This transcript is automatically generated

Or green well the turmoil continues to Barclays and now it's gone beyond -- -- scandal that rocked the bank tell desperate as joining us back from vacation the very latest.

I still assessing -- that -- is actually have to get broken up here.

Here's -- US banks and six Mikhail you know don't get often got a little on a -- I -- put it what I.

When you talk to US banking CEOs and senior executives at Wall Street firms here's would they believe.

Could happen.

You know you you're always hesitant to say it's definite -- here's what could happen they're talking about in the UK some sort of a plan where they is set where they put in place.

A Glass-Steagall.

Act in the UK that's what people talking about here that's what they perceive UK regulators doing a Glass-Steagall act where essentially.

All the UK banks not just Barclays but all of them essentially -- the spit out their investment banking part from from their from their from -- -- -- firm.

It's why they doing this we should point out the UK regulators hate the notion of US banking one of the problems have Bob Diamond always has Bob diamonds that now.

Ousted CEO Barkley she had was when he bought Lehman even though we -- -- on the cheap.

Put four billion dollars UK regulators still hated it I can tell you from people work in that place they're telling me.

That the FSA which I think is is the functional equivalent of the SEC and that's it indeed disbanded -- they're gonna be in the super regulator in Europe.

That they did not like that so here's the thing what people believe there's gonna happen here is that -- is like all the banks.

We're talking could you know we don't know for sure this scandal is still brewing.

It's you know it's out there it's it's actually east it's one of the sleazy -- things that I've seen in a long time coming out of Wall Street.

They're talking about a break up of all the banks now let's get back to Barkley -- but I we should point out.

The Barkley is a bank in tremendous turmoil right now right people want to leave -- -- they're gonna do know they're gonna get their bonuses slash.

That the bank they have to install a new CEO clearly in in of itself from a business standpoint not from a regulatory standpoint.

The bank it is clear clearly a breakup of the investment bank from the from the bigger bank is clearly something that everybody's looking at internally -- why they're looking and it.

Bob Diamond and his team created this thing they created it almost from scratch -- what Lehman they -- other people that put it together.

And now the people they brought in there -- not only lost the guy at the top who had the vision that want to make make this thing into a world class sort of super bank on the on the scale of JPMorgan.

Now he's gone.

Bonuses are gonna be -- because they're gonna get smashed with that with with lawsuits -- you know -- the numbers are just beginning to -- -- up at Barclays.

And people know that it's not going to be great place of the gonna lose talent and clearly the board is worried whether they got into the Barkley scatter is going to be worth it now the only sliding going to be here.

Is who would buy it I don't know who would buy it.

And can they -- and or if -- if they don't sell to someone I don't think Goldman Sachs is gonna by Barclays Capital they don't still would do that -- spit it out to a separate stock deal.

These are all very difficult question -- Every inserts and you know we all know people that work over there hadn't met them you know over time and they were miserable when you they went there from Lehman investment bankers particularly.

Now here's another crisis after they've sort of solicit offered a long we stay -- -- job.

I guess about it are the better off the gets broken up I mean I'm they need to get back to what they like to -- despite being you know sort of -- taken -- by Barclays and a lot of the investment bankers felt like.

These guys do something totally different they're trying to manage our business plan -- better I'd I'd I'd I know I don't know.

-- the united first -- we should point out for 80% on this probably no jobs.

Let me get out.

Barkley does very with a good thing that they're shut down curve bear if they wanna leave right now because they know their bonuses and -- and investment banker you said there's no I don't markets.

There don't know where to go for 80% of so they're gonna have to it's almost a little about the state.

And then after state to lawsuits have more fines of lousy bonuses and a lot of a lot of stuff some of the same stuff that you know -- they got hit.

The Bank of America got hit with in the aftermath of the Merrill deal and all the stuff that went down during the financial crisis and will -- what's gonna happen -- next couple months so it's hard to say this is up.

This is the I.

It's hard.

It's hard to put this awards is a very tumultuous time if you work at that bank.

What makes even worse is that they're they're they're they're regulated by the UK and if you think the anti -- sentiment is bad here.

It's thirty times -- in the UKS interests and you know you've got to regulatory break up possibility right.

And -- -- the business break up and both sides are real lot of stuff to cover this is developing continue to try thinking of.

Load More