Barclays (Investment Banking)

ABOUT THIS COMPANY:

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Known as a powerhouse in the fixed income marketplace, Barclays investment banking division (formerly known as Barclays Capital) is an arm of Barclays PLC, a venerable London bank that dates back to 1690. The investment bank was created in 1997 to provide strategic advisory, financing, and risk management services to corporate, government, and institutional clients around the world. Although it’s younger than many of its peers, the investment bank's relationship with Barclays PLC allowed it to grow at an astonishing rate: today it has offices in over 30 countries and employs more than 25,000 people. The firm has expertise in a wide variety of products and services, including bonds, commodities, convertible bonds, credit products, electronic trading, emerging markets, equity derivatives, equity origination, foreign exchange, fund-linked derivatives, fund solutions, index products, inflation-linked products, interest rate products, leveraged finance, loans, M&A, market making, municipal finance, prime services, private equity, research, restructuring, securitization, and structured investments. In September 2008, the investment bank increased the scope of its offerings when its parent acquired Lehman Brothers’ North American investment banking business for $1.75 billion. The deal, struck just one day after a struggling Lehman had filed Chapter 11 bankruptcy, included Lehman’s equity, fixed income, and M&A advisory units, as well as approximately 10,000 Lehman employees. The deal also included Lehman’s trading assets, which had an estimated value of $72 billion; liabilities worth $68 billion dollars; Lehman’s New York City headquarters; and two offices in neighboring New Jersey, with a combined market value of about $1.5 billion. Barclays expressed delight at the acquisition, making clear an ambition to increase its presence in the U.S. Barclays investment banking division chief executive at the time, Bob Diamond, confirmed the joy when announcing the Lehman deal, stating, “This is a once in a lifetime opportunity for Barclays.” A few months after the Lehman buy, in January 2009, Investment Dealers’ Digest named Diamond its Best Banker of the Year. Diamond eventually became CEO of Barclays PLC. But in mid-2012, less than 18 months on the job, Diamond was forced to resign his post amid an interest-rate manipulation scandal. The scandal also resulted in Barclays' chairman and COO resigning.