Barclays PLC’s (NYSE: BCS) strong earnings briefly masked the great obstacles the bank faces because of the Libor scandal and management and board resignations. The bank made $6.4 billion last quarter. The management said July results appear strong.
The good news lifted shares in London trading. But the enthusiasm about the bank will be short lived. By all appearances, the investigation into Libor fraud has become international, and Barclays is one of the institutions at the center of it. Even if other banks are implicated, Barclays cannot escape what are likely to be months of investigations, fines and perhaps prosecution of several of its traders.
Douglas A. McIntyre