CNBC: Barclays’ CEO Staley Says Volcker Rule and Dodd-Frank Here to Stay
- Staley reveals his views on the Volker rule and his hopes for a settlement over the mis-selling of mortgage-backed securities.
Barclays CEO Jes Staley has revealed how his company has made adjustments in accordance with the various banking regulations in the United States, and that his peers in the sector need to get used to them, in an interview with CNBC at the World Economic Forum in Davos.
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Volker Rule
He told CNBC: "I think the Volcker rule is very clear, they want to move Wall Street from managing proprietary and trading desks to being agents and broker dealers for the broader capital markets.”
"Barclays has gotten there very quickly, we are not in the proprietary trading business in our investment bank, we like the broker dealer model, we like the consistency of our revenues, we like the revenues versus risk that we have, which I think is where the regulators want us to be," he added.
Staley said that he believes that Dodd-Frank, a comprehensive and notoriously complicated piece of financial Regulation Regulation Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Read this Term which emerged after the 2008 recession, is going to stay in place and that “the banks need to operate on this”.
However, his comments may not deter some of the big US banks who were recently reported to be gearing up for getting Congress to loosen or even eliminate the much-loathed Volcker rule in the belief that it is reducing market Liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term, thereby hurting companies, investors and the economy.
DoJ Settlement
In terms of reaching a settlement with the US Department of Justice over the mis-selling of mortgage-backed securities, this has yet to materialise, unlike Germany’s biggest bank, Deutsche Bank, which recently agreed to a $7.2 billion deal. However, hopes remain for a fair settlement which appropriately reflects the agreements made between the US banks and officials.
Staley said that banks needed to fix their mistakes but stressed that any deal needed to be fair.
He concluded: "We will deal with the Department of Justice with this issue over time and we'll be fine”.
Barclays CEO Jes Staley has revealed how his company has made adjustments in accordance with the various banking regulations in the United States, and that his peers in the sector need to get used to them, in an interview with CNBC at the World Economic Forum in Davos.
To unlock the Asian market, register now to the iFX EXPO in Hong Kong
Volker Rule
He told CNBC: "I think the Volcker rule is very clear, they want to move Wall Street from managing proprietary and trading desks to being agents and broker dealers for the broader capital markets.”
"Barclays has gotten there very quickly, we are not in the proprietary trading business in our investment bank, we like the broker dealer model, we like the consistency of our revenues, we like the revenues versus risk that we have, which I think is where the regulators want us to be," he added.
Staley said that he believes that Dodd-Frank, a comprehensive and notoriously complicated piece of financial Regulation Regulation Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Read this Term which emerged after the 2008 recession, is going to stay in place and that “the banks need to operate on this”.
However, his comments may not deter some of the big US banks who were recently reported to be gearing up for getting Congress to loosen or even eliminate the much-loathed Volcker rule in the belief that it is reducing market Liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term, thereby hurting companies, investors and the economy.
DoJ Settlement
In terms of reaching a settlement with the US Department of Justice over the mis-selling of mortgage-backed securities, this has yet to materialise, unlike Germany’s biggest bank, Deutsche Bank, which recently agreed to a $7.2 billion deal. However, hopes remain for a fair settlement which appropriately reflects the agreements made between the US banks and officials.
Staley said that banks needed to fix their mistakes but stressed that any deal needed to be fair.
He concluded: "We will deal with the Department of Justice with this issue over time and we'll be fine”.