February 19, 2012
A tougher road than expected for expanding Barclays; no implications (yet) for Brooklyn promotional efforts
Atlantic Yards Report
So, the banking firm plastering its name on the Brooklyn arena is hitting a rough patch, at least in Europe. In a 2/9/12 article headlined Barclays Falls Short of Big Dreams, the Wall Street Journal reported:
In June 2009, top Barclays PLC executive Robert Diamond laid out an ambitious plan for the venerable British bank "to be the premier global investment bank," a goal he hoped to achieve "over the next couple of years."
More than three years after Barclays absorbed Lehman Brothers' North American operations in a cut-price deal that represented a critical moment of the financial crisis, Barclays has yet to achieve the lofty goals set out by Mr. Diamond, now the bank's chief executive.
Despite making progress, the investment-banking division, called Barclays Capital, is making less money than executives predicted. In Europe, which Barclays targeted as a key growth area, it has struggled to win investment-banking assignments in the crucial areas of equities and mergers and acquisitions. It has fallen short of a goal to become a top-three player in those categories.
The strategy in the U.S. may be on more solid ground, but it's just the key part of the business, according to the firm's report of 2011 results, issued 2/10/12.
Still, if Barclays doesn't do better, who knows, maybe it will want to renegotiate, yet again, the naming rights agreement. Or place a greater priority on using the Barclays Center arena to boost its profile. Stay tuned.
Posted by steve at February 19, 2012 10:46 PM