Home » Behavioural Investing » Barclays New Horizons Deep Value But First Some Pain $BCS #LIBOR #Barclays

Barclays New Horizons Deep Value But First Some Pain $BCS #LIBOR #Barclays

Barclays Center

Barclays Center (Photo credit: Wikipedia)

Barclays (NYSE:BCS) just announced a new CEO. Surprise they stayed with one of their own and Antony Jenkins gets the hot seat. There was consensus that Barclay’s should go with someone from the outside. Somewhat understandable when it appeared the whole command structure of Barclay’s seemed suspect and disappointing. But you see this Diamond guy who had to be shown the door was an outsider and apparently was quite the disappointment. He was a Yank too and well here is the opportunity to fix that problem.

But when you think about it Antony Jenkins is the right guy. There is much fixing work to repair Barclay’s. They not only stand astride the LIBOR scandal but Banks in general are suspect. Derivatives as financial weapons of mass self-destruction, terrible European economy, snail slow US economic recovery, Basel capital adequacy issues. Well lets just say the list goes on and on. Then you have the organizational aspects of the new Barclay’s as its refocused and re-purposed. Or put another way cutting and chopping people and jobs.

This is why you want an insider. An outsider would hire lots of consultants to tell him what is going on. The insider knows or can find out very quickly.

What does this mean to the shareholder. Huge write-offs as the ugly heavy retooling work is undertaken. The stock price will sag and suffer in the interim. Deep value investors will find Barclay’s on their radar. but it will be only the bold and the brave who will benefit.

George Gutowski writes from a caveat emptor perspective. Follow me on twitter @financialskepti

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