Reports of strong investment banking profits from Britain’s two largest banks, HSBC Holdings PLC and Barclays PLC, is raising hopes that the worst of the financial crisis is over for them.
Both banks, which rebuffed a government bailout of the banking systems, signaled that bad debts may be nearing their peak as opposed to their taxpayer-supported rivals such as Lloyds Banking Group PLC which just announced plans to lay off 5,000 more employees.
HSBC Chief Executive Michael Geoghan said, “the biggest jolt has now passed through the global economy” and Barclays—whose CEO John Varley made recent headlines with his declaration, “profit is not satanic”—will resume dividend payments for the first time in more than a year. The British banking giant, which took over the bankrupted Lehman Brothers only a year ago, reported that income in its investment banking business Barclays Capital surged 32 percent over the first nine months.
About EQUITIES:
Since 1951, EQUITIES Magazine has been a leading media company providing business editorial content designed to serve the needs of business leaders, professionals, institutional investors and retail investors. We are focused on business and the business of making money, not on lifestyle subjects. We publish original reporting in print and on our website, as well as select content at www.nasdaq.com. For 28 years we have hosted our own branded investor conferences that connect public company CEO’s with our loyal readers in the investment community.
Sign up for a free one-year subscription to EQUITIES Magazine
