Barclay’s Capital is known for its success story of growth and retrenchment, may it be in commodities or in dominating the Asia, emerging markets and its own continental Europe. The 322-year old institution has gone through an evolution where it saw itself emerged as a top banking institution all over the world.
Founded in 1985, under the name Barclays de Zoete Wedd, Barclay’s rose to existence as a response to the controversial Big Bang in the financial services in UK. It was established as a result of merging process done with the Barclays Merchant Bank and the UK stockbroker de Zoete & Bevan and later emerged as institution which specializes in finance and risk management and provides advisory to huge companies and the government.
With its large scope of clients in less than 30 countries, BarCap became a leading banking powerhouse in the world through its diverse strategy.
Investors watched the bank grow and carved its name in the world market starting in 2008. When the financial crisis arises, Barclay was seen firmly standi g, generating a monstrous return on equity of 20% and staggering 70% revenue rates under the leadership of Bob Diamond. The market was slumping but Barclay was totally fine.
And even in the next few years, the bank has gained an invincible status and reached an unprecedented growth in Asia with its incredibly powerful client franchise. It has done a magnificent 85% business in Europe and 50% in Asia and began exploring the emerging markets and oil industry.
But despite the consistent success, Barclay cannot escape a storm that can scathe its well-respected name.
Just as of Dec 22 of this year, the US government is suing the bank and its two former executives on civil charges of fraud, brought up by the persistent of the bank from a penalty imposed by the government from the sale of mortgage-backed securities in the times of financial crisis.
Is the spectacular run of Barclay about to end? Or can the second-largest bank in Europe weather the storm?