Barclays Wealth

Barclays
#1

Hey,

Could someone please give me some tips on this question:-

Describe a recent development in the industry. What implications might this development have for Barclays or Private Banking? (answer in 90 words)

Thank You!

#2

Could someone also tell me the difference between Wealth Management, Private Wealth Management and Private Banking?

#3

I think Wealth management is a general term and is mainly about long term financial planning. It is helpful if you are accumulating wealth and need some specialist advise from your bank. Later reaching the hurdle point you will require a Private Wealth Management services, I guess. Private Wealth management guys work with individuals with a high “Net Worth”. The term Net Worth is the key in Private Wealth Management as the clients of the team are supposed to hold huge amount of assets under management. I Banks like BarCap would then simplly advise those clients on how to earn more. Typical services/instruments include, sophosticated financial products, derivatisation of stock deals, tax saving investments, etc. Actually, Ibanks make huge profits from these deals.

I think anyone can use Private banking services, typical high street retail banks have those services. This kind of banking does not use investment techniques as Ibanks do. I think Natwest has private banking services to clients with £25000 savings and up.

good luck

#4

The “credit crunch” seems the most obvious thing to comment on… I don’t know the specifics of how this would affect Barclays but I’m sure it would be easy enough to research.

#5

I think most of the Ibanks would expect you to tell them about the credit crunch, but you tell them about nondom tax changes. Most of the wealthy people are from overseas now and many ibanks target people like russian oligarhs. Because of those changes, many wealthy people tend to go to tax heavens in other parts of Europe. That means, less profit to banks like Barcap in Britain. You can pick up specific cases. If you have been reading FT.com you should be able to find a good article about some wealthy people moving their assets from the British banks to Swiss and others. City AM is a good source as well.

good luck

#6

The answer to this question is pretty much here:
*[[Private wealth management]]
*[[Wealth management]]

#7

I work in Wealth Management and can assure you the above explanations of the two divisions are partially untrue, VERY poor and inaccurately explained.

#8

Would you like to improve them?

#9

Definitely, I will make necessary improvements/changes over the weekend !

#10

Great! …we could obviously use your help!

#11

Yeah I need help too on the competency questions. I am applying, I want to go for for the role in New York, rather than London. Would be a cool experience, is it a risk though as I might not get granted a visa?
(Barclays will apply for one on my behalf)

#12

Yeh could be tough. Are you sure you can do this?

#13

Its gonna be very hard…harder than getting a role in london…

#14

nakulmalhotra: would you mind explaining wealth management/private wealth management - that way we can improve the wiki!

Cheers!
Chris.

#15

Chris…I had actually promised someone I would do so in about ten days ago…because i am travelling at the moment…but will do it for sure soon !!

#16

Oh brilliant! Have a good trip!

#17

Where are you travelling nakul?

#18

Delhi …visiting some family and friends and for around ten days!!!
tc

#19

Barclays sees potential in US

By Francesco Guerrera in New York

Published: August 19 2008 23:32 | Last updated: August 19 2008 23:32

Barclays would consider buying a US wealth management company but is “highly unlikely” to bid for an investment bank, even with the depressed share prices of many Wall Street firms, Bob Diamond, the bank’s president, said on Tuesday.

Mr Diamond, who runs Barclays Capital, the UK bank’s investment bank, told the Financial Times that the credit crunch offered an unprecedented chance to take business from more established US rivals.
“The US opportunity in investment banking for Barclays Capital is a generational one. How often have we seen six or seven of our biggest competitors deflected because of the issues they are facing?” he said.

His comments exemplify Barclays’ strategy of taking advantage of the dislocation created by the crisis to challenge Wall Street’s “bulge bracket” firms in areas such as fixed income, foreign exchange and commodity trading.

Mr Diamond added that Barclays, which has a large wealth management business in Europe and Asia, would consider taking over a US rival to boost its growth in the country.

“In the US, we would love to find an acquisition in wealth management, with particular focus on high-net-worth individuals, to kick-start our growth plans,” he said.

US banks seeking to raise capital, including Lehman Brothers and the regional lenders Fifth Third and National City, are believed to be considering selling all or parts of their asset management divisions.

Mr Diamond declined to comment on potential targets but people close to the situation cautioned that the bank would not rush into an acquisition.

Barclays recently raised £4.5bn to boost its balance sheet and indicated it could use half that to expand its business. However, some analysts have questioned Barclays’ financial strength.

Mr Diamond appeared to quash rumours that Barclays could bid for Lehman. He declined to comment on Lehman, whose share price has lost 77 per cent of its value over the past year, but indicated that Barclays would wait at least until prices hit distressed levels.

“I have consistently said that in investment banking, our strategy is to grow organically and hire the right people,” he said. “It would take a very, very attractive opportunity to change that. I think that is highly unlikely but not impossible.”

#20

Going back to the original post, I’d have thought one significant recent development was the High Court ruling earlier this year that the OFT has the right to assess bank charges for fairness. Some have suggested that could spell the end of free banking as the banks try to recoup their costs via other means. I know that’s not specific to Barclays but hey, just throwing it out there.