Barclays Investment Bank

Barclays Investment Bank is the investment banking business of Barclays plc, the British universal bank headquartered in London. It serves large companies, financial institutions, governments and other institutional clients through advisory, financing, capital-markets, markets and risk-management activities. The business is part of Barclays International and is commonly associated with the historical Barclays Capital, or BarCap, name. The division’s modern identity developed from Barclays’ expansion into securities and merchant banking during the transformation of London’s financial markets in the 1980s. In response to the 1986 “Big Bang,” Barclays acquired the stockbroker de Zoete & Bevan and the jobbing firm Wedd Durlacher. These businesses were combined with Barclays Merchant Bank to create Barclays de Zoete Wedd, generally known as BZW. BZW represented Barclays’ attempt to build a broader investment-banking and securities platform alongside its established retail and commercial banking operations. During the 1990s, Barclays reorganised the business around a stronger international investment-banking model. Bob Diamond took responsibility for the investment-banking businesses in 1996 and pursued competition with large United States investment banks. The strategy exposed the business to major market volatility, including losses during the 1998 Russian financial crisis, but also helped establish the platform that later became Barclays Capital. In 1998, Barclays sold BZW’s equity and corporate-finance activities to Credit Suisse First Boston while retaining its debt-focused fixed-income and structured-capital-markets operations. Those retained activities formed the basis of Barclays Capital, the predecessor and historic brand identity of Barclays Investment Bank. The business expanded substantially in 2008 when Barclays acquired the North American operations of Lehman Brothers after Lehman Brothers filed for bankruptcy. The transaction gave Barclays additional people, client relationships, trading capabilities and infrastructure in the United States and strengthened its position in global investment banking and markets. Barclays subsequently operated a large international platform with offices in numerous countries and a substantial technology and operations workforce. Within the current Barclays structure, the investment bank is positioned as a bulge-bracket provider of corporate and institutional financial services. Its activities include mergers-and-acquisitions and other strategic advice, equity and debt issuance, leveraged and acquisition financing, structured finance, foreign exchange, rates, credit, commodities and other markets services, as well as derivatives and risk-management solutions. Barclays is also a primary dealer in United Kingdom government securities, United States Treasury securities and various European government bonds. Barclays Investment Bank is not a separately listed company. Its financial performance, capital allocation and governance sit within Barclays plc, whose other major businesses include the UK Consumer Bank, UK Corporate Bank, Private Bank and Wealth Management, and US Consumer Bank. The division’s public identity has varied over time: Barclays Capital and BarCap were prominent historical names, while Barclays Investment Bank is used within the group’s current divisional structure. Exact divisional founding dates, current executive assignments and detailed financial figures are not established by the supplied source material.

Barclays Investment Bank’s history is part of Barclays plc’s longer evolution from a British deposit bank into a diversified international financial-services group. Barclays traces its institutional origins to the goldsmith-banking business founded in London in 1690 by John Freame and Thomas Gould. The Barclays name entered the partnership in 1736 when James Barclay joined the business. In 1896, a group of London and provincial banks combined as Barclays and Co., creating the joint-stock institution that later expanded into nationwide banking and overseas operations. The investment-banking division did not begin as a separately dated enterprise. Its foundations emerged from Barclays’ merchant-banking, securities and international banking activities, particularly during the restructuring of the City of London after the 1986 Big Bang. Barclays acquired the stockbroker de Zoete & Bevan and the jobbing firm Wedd Durlacher, then combined them with Barclays Merchant Bank to form Barclays de Zoete Wedd, or BZW. This gave the group a platform in securities dealing, corporate finance and capital markets. Barclays pursued a more ambitious investment-banking strategy in the 1990s. Bob Diamond assumed responsibility for the investment-banking businesses in 1996 and sought to develop a competitor to the major American bulge-bracket firms. The strategy produced both growth and volatility. The investment-banking operation lost substantial sums during the 1998 Russian financial crisis, illustrating the risks of expanding in highly leveraged and internationally connected markets. In 1998, Barclays reshaped the platform by selling BZW’s equity and corporate-finance divisions to Credit Suisse First Boston. It retained the debt-oriented fixed-income business and structured-capital-markets activities. These retained operations became the foundation of the rebranded Barclays Capital, often shortened to BarCap. The new platform concentrated on debt markets, financing, structured products and related institutional services, while remaining connected to Barclays’ wider corporate and commercial-banking franchise. The business later expanded its international reach through organic growth and acquisitions. A defining event occurred in 2008, during the global financial crisis, when Barclays acquired the North American operations of Lehman Brothers after Lehman entered bankruptcy protection. The acquisition added staff, clients, trading operations and technology to Barclays’ United States and global markets businesses. It helped turn Barclays Capital into a much larger international investment bank and reinforced the group’s presence in the United States. Over time, the BarCap name became associated with Barclays’ global investment-banking and markets activities. In the group’s contemporary organisational structure, the business sits within Barclays International and is generally presented as Barclays Investment Bank or as part of Barclays Corporate and Investment Bank. Its work spans strategic advisory, mergers and acquisitions, equity and debt capital markets, financing, fixed income, currencies, commodities, credit, derivatives and risk management. It also participates as a primary dealer in major government-bond markets, including United Kingdom gilts and United States Treasuries. The division remains a business unit rather than a separately listed legal issuer. Barclays plc owns and reports the wider group, while the investment bank operates alongside consumer, corporate, private-banking and wealth-management divisions. Because the supplied reference material does not provide a complete standalone chronology, current leadership roster or divisional financial statements, those details are left limited here rather than inferred.

1. 2008Acquisition of Lehman Brothers North American operations

   Barclays acquired Lehman Brothers’ North American operations after Lehman’s bankruptcy, expanding its investment-banking and markets capabilities.

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2. 1998BZW restructuring and Barclays Capital foundation

   Barclays sold BZW’s equity and corporate-finance operations to Credit Suisse First Boston and retained fixed income and structured capital markets, which formed the basis of Barclays Capital.

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3. 1996Investment-banking expansion under Bob Diamond

   Bob Diamond took charge of Barclays’ investment-banking businesses as the group pursued a stronger international bulge-bracket position.

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4. 1986Creation of BZW

   Barclays combined acquired securities businesses with Barclays Merchant Bank to create Barclays de Zoete Wedd, or BZW.

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5. 1896Formation of Barclays and Co.

   Twelve London and provincial banking houses combined to form the joint-stock bank Barclays and Co.

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6. 1690Origins of the Barclays banking business

   John Freame and Thomas Gould began a goldsmith-banking business in London that forms part of Barclays’ institutional ancestry.

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A global, full-service investment bank within Barclays plc, focused on large corporate, institutional and government clients and combining advisory, financing and markets capabilities.

• Investment banking advisoryAdvisory

  Advice for corporations, financial institutions and governments on strategic transactions, mergers and acquisitions, restructurings and related corporate-finance decisions. The supplied sources identify advisory as a core service but do not provide a detailed product catalogue or current fee structure.

• Debt capital marketsCapital markets1998

  Origination, structuring and distribution of debt financing for corporate, institutional and sovereign clients. This activity is part of the debt-focused platform retained after the 1998 BZW restructuring and later associated with Barclays Capital.

• Equity capital marketsCapital markets

  Equity issuance and related capital-markets services for eligible corporate and institutional clients. The source material confirms Barclays’ historical equity and corporate-finance presence through BZW, but does not specify the current product range in detail.

• Global marketsMarkets1998

  Institutional markets services covering fixed income and other major asset classes, including rates, currencies, credit and commodities. The platform supports trading, market access, financing and hedging for corporate, institutional and government clients.

• Structured finance and risk managementFinancing and risk management1998

  Structured-capital-markets, financing and risk-management solutions designed for complex funding and hedging requirements. These activities were among the operations Barclays retained when it sold BZW’s equity and corporate-finance businesses in 1998.

• 2008Acquire Lehman Brothers’ North American operationsM&A

  Lehman Brothers collapsed during the global financial crisis, making its North American operations available for acquisition.

  What changed. Barclays acquired the North American operations, including associated people, client relationships and infrastructure relevant to investment banking and markets.

  Aftermath. The transaction significantly enlarged Barclays’ United States and global investment-banking platform.

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• 1998Refocus BZW on debt and structured capital marketsStrategy

  Barclays reorganised its investment-banking activities after pursuing a broad platform that included equity and corporate finance.

  What changed. It sold the BZW equity and corporate-finance divisions to Credit Suisse First Boston while retaining fixed income and structured-capital-markets activities.

  Aftermath. The retained businesses became the foundation of the rebranded Barclays Capital, giving the group a more debt- and markets-oriented investment-bank identity.

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• 1986Build a securities and investment-banking platform after the Big BangStrategy

  London’s 1986 financial-market deregulation created pressure for traditional banks to develop broader securities and capital-markets capabilities.

  What changed. Barclays acquired de Zoete & Bevan and Wedd Durlacher and combined them with Barclays Merchant Bank to create BZW.

  Aftermath. The transaction established a more substantial Barclays presence in securities dealing and corporate finance and provided the platform later reorganised into Barclays Capital.

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• 2008Barclays acquires Lehman Brothers North American operations

  Barclays acquired the North American operations of Lehman Brothers following Lehman’s bankruptcy, materially expanding its investment-banking and markets platform.

  M&A
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• 1998Barclays sells BZW equity and corporate-finance businesses

  Barclays transferred BZW’s equity and corporate-finance activities to Credit Suisse First Boston while retaining fixed income and structured-capital-markets operations.

  M&A
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• 1996Barclays appoints Bob Diamond to lead its investment-banking businesses

  Barclays placed Bob Diamond in charge of its investment-banking businesses as it pursued a larger international position against major United States investment banks.

  Leadership change
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1. Barclays