Ring-fencing uncertainty continues to plague banks, notably those which ironically have balanced businesses in both the wholesale and retain space. Barclays, for one, has reportedly laid aside £1 billion to prepare for the new regime (see http://news.sky.com/story/1578304/barclays-counts-1bn-cost-of-ring-fencing). Those banks with more focused businesses in only one or the other such as Lloyds, can better live with ring-fencing it the rules effect a smaller part of the bank. But firms which have a strong footprint in each, can be more impacted by ring-fencing and its consequences at an operational, liquidity and governance level. It is now understood the Barclays has sought to get a temporary waiver from its regulator and possibly allow it to operate the ring-fenced retail entity as a subsidiary. Helpfully, the regulator seems to acknowledge that one size doesn't fit all in this world with different business models. For more information: http://www.moneymarketing.co.uk/barclays-seeks-ringfencing-waiver/.
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