11/11/14 As Currency Settlement Draws Near, Barclays Is Said to Get Cold Feet
The giant British bank Barclays has informed regulators that it might not join the settlement, according to people briefed on the matter, a decision that grew more and more final as the hours dragged on.
For its part, Barclays developed cold feet as other regulators, the Federal Reserve and the Department of Financial Services in New York, declined to join the settlement planned for Wednesday.
The bank, the people said, questioned whether the settlement might open the door to the New York regulator withdrawing the bank’s license to operate in New York. But there was no indication that the regulator, Benjamin M. Lawsky, would take such drastic action.
Instead, the New York regulator and the Fed indicated that they were reluctant to join a settlement because their investigations were still at an early stage. The New York agency, which has a reputation for breaking from other regulators in prominent enforcement cases, privately complained that one big deal might provide cover to the banks and amount to a slap on the wrist.
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http://dealbook.nytimes.com/2014/11/11/as-currency-settlement-draws-near-barclays-is-said-to-get-cold-feet/
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