FOX Business Network’s (FBN) Charlie Gasparino reports “Barclays’ Americas wealth management business—the brokerage unit of the old Lehman Brothers—is on the selling block, brokers at the firm are being told by their managers.”
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On whether Barclays is selling its Americas wealth management business:
“One of the last vestiges of the Lehman Brothers that still exists at Barclays’ Americas unit could be sold, the Fox Business Network has learned. Barclays’ Americas wealth management business—the brokerage unit of the old Lehman Brothers—is on the selling block, brokers at the firm are being told by their managers. The moves comes amid a wave of defections from the division of the London-based bank to other brokerage houses, and as Barclays, like other big foreign owned banks, comes under tremendous pressure to downsize amid tougher new regulatory standards. A spokeswoman for Barclays’ Americas wouldn’t deny the possible move. “We are always evaluating strategic options for our businesses. If any firm decisions are made, we will provide an update in the second quarter,” the spokeswoman said in a statement to Fox Business.”
On how close they are to seeing the brokerage unit:
“It’s unclear how close the firm is to selling the US brokerage unit, which is separate from Barclay’s larger wealth management division that operates globally and doesn’t appear to be for sale, or how much money an outside firm might be willing to pay. But brokers at Barclays say they have been told by their managers not to take bonus offers to jump ship to another firm because a sale could come soon. Managers have told these brokers that a “sale could be in the works” said one person with direct knowledge of the matter, and if such a sale takes place, brokers would likely receive so-called retention bonuses to stay at the new firm.”