‘Bad Bank’ Could Help Barclays, Analysts Say

Barclays should consider a restructuring that includes the creation of a “bad bank” for holding its non-performing loans, according to UBS analysts, reports The Guardian.

Barclays should consider a restructuring that includes the creation of a “bad bank” for holding its non-performing loans, according to UBS analysts. The analysts, John-Paul Crutchley and Alastair Ryan, say such a structure could free up roughly £10 billion ($15.5 billion) that the bank could return to shareholders. They note that Barclays had set up a separate division in the 1990s to “to run down low return or non-core assets” after it found itself in a similar situation as today. Such a bad bank, say the analysts, would include “half of its Barclays Capital business, all of the European and new markets corporate business and a small amount of its retail business.”

Click here to read the story from The Guardian.