Financial Business Wrap: Blackstone Ridicules Lawsuit, Barclays Reserves More Cash

Morgan Stanley (NYSE:MS) Chief Financial Officer Ruth Porat says that, “Clients re-engaged and continued to re-engage throughout the quarter,” as trading revenues zoomed after the drawn-out ratings cut process was settled. The reduction in VaR was accomplished by checking back 1 year rather than 4.

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President Tony James of The Blackstone Group (NYSE:BX) says that the lawsuit brought against KKR & Co. (NYSE:KKR) is “full of malarkey.” The suit alleges that the company and others committed collusion. James commented on a friendly email between him and George Roberts that it is “a requirement” for the firms to collaborate on big deals.

Barclays (NYSE:BCS) reports that it has seen higher-than-expected claims in regards to payment protection insurance policies that it sold and thus reserves an additional £700 million. Thus far, the bank has shelled out £1.2 billion in claims while the United Kingdom’s banking industry overall has set aside an amount in excess of £10 billion.

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