Barclays PLC (NYSE:BCS) is about to release the latest earnings. They have fared the best of British Banks since the melt down and have attracted some political commentary. Ponder this Bear Case Scenario as you contemplate management comments.
The investment bank has very high compensation costs as all the traders and gunslingers demand more and more and get more and more. Diminishing returns. Eventually you have to outsource to pay for performance. Pick the right ones and trash the rest.
Barclay’s culture is still to build empires. They will lay and bleed a while but will they survive the next time.
Regulatory changes and poor economic outlook in Europe will hamper results. Time is a wasting meanwhile.
George Gutowski writes from a caveat emptor perspective.