Barclays Plc, Britain’s second- largest bank by assets, may post a 19 percent gain in second- quarter profit as Chief Executive Officer Antony Jenkins tries to fend off regulators’ calls to raise capital immediately.
Barclays Plc, the U.K.’s second- largest bank by assets, plans to raise 5.8 billion pounds ($8.9 billion) in a rights offering to bolster capital as it booked its biggest charge to date for customer compensation.
Barclays Plc, the only U.K. consumer bank not to have scrapped its profitability target amid Europe’s debt crisis, will struggle to reach the goal without cutting costs as revenue from investment banking falls, analysts said.
Charles Plosser, president of the Federal Reserve Bank of Philadelphia, said the Fed will probably need to raise interest rates before mid-2013 and that policy makers should have waited to see how the economy performed before pledging to hold rates at record lows for two years.
The British government commission that convenes tomorrow is unlikely to propose breaking up the country’s biggest banks after three of the five biggest lenders threatened to leave the country rather than accept change.