Barclays said near deal, JPMorgan eyes sale, RBC shuts European bond trading business

Barclays Building Sign

Barclays is close to a deal with regulators that would see it comply with a new regulatory leverage requirement by December next year, in a snub to former Bank of England governor Lord King, who had argued for an end-2013 deadline.

The Financial Times reports that people familiar with negotiations between the bank and the BoE’s Prudential Regulation Authority unit said Barclays was likely to confirm the deal alongside annual results next Tuesday.

In the meantime, Reuters reports that JPMorgan commodity trading arm is looking to sell more of the electricity deals it has with U.S. power plants and wind farms, a source familiar with the business said on Wednesday, at a time when Wall Street's involvement in physical commodity markets is under heightened scrutiny.

The so-called power tolling and marketing deals cover enough electricity to light up Indiana's 2.8 million homes, according to detailed regulatory filings, and include almost 3,000 megawatts of power generation spread across nine states.

Finally, Bloomberg News reports that Royal Bank of Canada has closed its European government-bond trading business amid slumping returns from the region.

'This tactical adjustment in our product offering is consistent with our strategy of being active in the markets in which we add the most value to our clients', Gillian McArdle, a spokeswoman for RBC Capital Markets, said in an e-mail statement. The decision is effective Wedesday, the bank said.

Barclays nears deal with regulators (subscriber content)

JPMorgan's commodity arm eyes sale of power plant trading deals

Royal Bank Shuts European Bond Trading Business

image: © Elliot Brown

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