Barclays’ external legal advisers are expecting widespread spending cuts by the bank’s legal function as part of its Transform Programme to drive efficiency and improve the UK lender’s image.
The Lawyer reports that the bank invited selected panel firms to a Transform Supplier Summit earlier this month in which senior executives such as CEO Antony Jenkins and deputy general counsel Michael Shaw addressed advisers on the impact of Transform.
While no figure has been given for the size of the cuts in the legal department, recent media reports suggest the bank is looking to cut £2bn from its overall cost base of £20bn.
In the meantime, Reuters reports that a Swiss court has ordered an injunction halting the transfer of a former Credit Suisse employee's data to U.S. authorities as part of the bank's attempt to settle a tax investigation, a lawyer involved in the case said on Tuesday.
Douglas Hornung, a Geneva-based lawyer acting for the former Credit Suisse employee, said the ruling was made on June 21, confirming a preliminary decision in January.
Finally, Bloomberg News reports that Morgan Stanley and Bank of New York Mellon Corp. are the two U.S. banks likely to have the largest capital shortfall if regulators double the so-called leverage ratio without exempting cash and government bonds, Goldman Sachs analysts wrote in a note earlier this week.
Morgan Stanley’s Tier 1 leverage ratio is about 4.5% and Bank of New York’s 3.9%, the farthest behind the 6% requirement said to be under consideration, Goldman Sachs analysts said in the note. The average Tier 1 leverage ratio for large banks is 5.5%, the analysts said.
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