NEW YORK (TheStreet) — Barclays said Monday that it will to sell its $6.1 billion stake in BlackRock in an effort to meet new regulatory measures.
The second largest bank in Britain took a 19.6% stake in Blackrock, one of the world’s largest asset managers, when it sold its ETF and investment fund unit called Barclays Global Investors to BlackRock for about $15.2 billion in 2009.
Barclays sale of BGI was an effort to raise private capital during the financial crisis, as peer institutions like Royal Bank of Scotland were partially nationalized by the British government. In contrast, because Barclays stake in BlackRock will no longer count as capital when new Basel capital rules are enacted, Monday’s sale is an effort to meet new standards, as banks around the world follow suit. …
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Excerpt from: Barclays Quits BlackRock
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