Financial Business Recap: Barclays Wants RID Of I-bank, Lloyds DIVESTS Toxic Loans

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Barclays (NYSE:BCS) is searching for way to divest its investment-banking division in reaction to the Libor scandal, according to The Sunday Times. A source to Marketwatch says that the report is not accurate, but if it is, the Barclays unit could float in New York as the United Kingdom-based retail and commercial bank keeps its London listing.

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Lloyds (NYSE:LYG) is said to be closing in on a deal to be rid of approximately £1 billion in toxic loans and equity stakes that it inherited through its 2008 HBOS acquisition, and that various private equity and vulture firms are competing as buyers.

Visa (NYSE:V) and Mastercard (NYSE:MA) are in for an “unavoidable” slowing during the next 3-6 months, opines John Williams at UBS, as he downgrading both to Sell, worrying out loud that while both stocks stand near all-time highs, they are exposed to a decided weakening in worldwide consumer spending.

Mitsubishi UFJ Financial Group (NYSE:MTU) has suspended two of its traders who are based in London, in connection with the Libor-fixing inquiry. The traders previously were employed by Dutch lender Rabobank, which is one of at least 12 banks that are being investigated by regulators.

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