Nothing - so they say.
'At current market cap new investors get the Barclays IB for nothing if the rest of the group is valued in line with peers', say Deutsche Bank’s analysts.
EfinancialCareers reports that the nil-valuation for the investment bank has prompted calls or it to spin-out, or for the Lehman deal to be unpicked. Analysts at Bank of America argued that last week that if Barclays detaches the US investment banking business gained from Lehman, it would offer an opportunity for the bank to ditch its global investing banking pretensions and to focus on its European client base.
Deutsche’s analysts thinking that lopping off the investment bank would be a mistake, however. They argue that in the medium term, spinning off the U.S. business or the investment bank in its entirety would be value-destructive.
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