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Barclays as a Group, was per- regions more than others but the nature of the investinent ting from the market losses suf-
fered by most people, "mespecti-
ceived to be safer. Our deposits certainly influences Europe and banker. How do we do it? First ve of the size of their wealth,
went up by 19% last yeg. We the United States. Therefore, we we get a better understanding of over the last two years this crea-
have continued to do business are still being careful. what his/l'ier real agenda is, and
where he/she wants to go as a tes a paralysis and refusal to
and our lending grew by 31o/o take risk at a time when there is
last year. Q: In a previous interview, private person, not as the presi-
you talked about the dent of a company. We then no clear consensus as to wliether
Neveriheless, we are facing a concept of private invest- involve our investtnent bank, the ci'isis is really over.
very difficult market situation. ment banking. What exact- Barclays Capital. Is it a question Cleai'ly, the apparent conclusion
In this complicated economic ly is this and for whom is it of providing more liquidity or of our study is that, wile the
environment, we are careful and designed? helping them to organize the
next steps in owning tbe compa- opportunities are there and reco-
are controlling our costs. By eli- gnised by investors, they see no
rninating superfluoris expendi- hz the last fifteen yeai's, we have ny in different manners, before reason to rush and prefer to play
ture, we have reduced our costs witnessed major wealth creation they put it out in international safe. Tlus is, in simple tei'ins, the
by 4% last year. Wbile we have in new regions of growth such markets? Then, we bring in the message of our study.
not proceeded with any major as Asia, the Middle East, but investment banking part so that
layoffs, we have sought to work also in Eastei'n Europe as a it works well on the business Q: As a banker, do you see
more productively. result of the enlargement of side of the company and on the do you
Europe as well as in Latin private banking side in tbe most any changes or will end
We have also made a very Ainerica which became a fairly efficient manner. In fact, think this attitude
soon?
important acquisition in the dynamic place. Barclays Wealth accompanies
them on both sides.
United States by buying tlie I think it will change. We should
Private Investment Wealth is increasingly the affair not underestiiriate or downplay
Management business within of new entrepreneurs. It is no Q: In the latest Barclays the enoi'inity of what has liappe-
Lehman Brothers wich gave us longer the established fainilies Wealth Insights, you talk ned: in tenns of economic acti-
a very strong footpmt in the tl'iat control tbings, as was the about what has happened vity, in tenns of the way we do
US. case before. When you talkto an after last year's financial
entrepreneur, yori can talk to crisis. What would you say business, in the new level of
Barclays Wealth now stands at in in two ways. First, you can is the most striking trend? intervention that goveminents
the crisis.
had to take througliout
the end of 2008 with assets of go and see as an investtnent
clients' wealth equivalent to bank. He is the president of his Tlie most stiiking trend is the Tlffs will probably mean in time
fl45 billion, compared witli own company that he still co-ex3stcnce of clear opportuni- igher taxation and more regu-
fl32.5 billion the year before. controls. He may need invest- ties iii the market to invest ones lations. Tlie wide-ranging
Elsewhere, a lot of new things ment banking solutions-whe- assets with a great measure of goveriunent deficits are worri-
have happened in tei'i'ns of intro- ther to sell his company, buy piudence by iiivestors following some and these are not thiiigs
ducing the new inveshnent phi- other companies, increase capi- the market instability over the that will go away quickly.
losophy. Tis is fundamental to tal or raise debts in international last 2 years. There are clearly Therefore people across the
the way we orgaxfflze and respect markets. These are a variety of some quality assets or financial board, realize tliat there has
the size of the investment objec- typically inveshnent banking assets in different regions, whe-
tives of our clients witli pro- achvthes. ther on the equity side, on the been a game change and we
have not yet understood fully
found and in-depth qriestionnai- bond side or the coini'nodity the consequences. This calls for
res aiid personality evaluation. Second, if you talk to hii'n as a side. This is very different from caution-a natiu'al attitude for
We by to align the way their wealth manager, you are addres- the previous 5 years when a lot anyone what lies over the liori-
portfolios are organized in sing the individual to maiiage of money was chasiiig few good zon is not clear.
accordance with their life situa- his personal wealth. A common investinents. Prices were liigh
tions, their tolerance of risk, etc. feature for these entrepreneurs and it were expensive. On the other hand, I stilI think
2009 has continued to be a clial- is that a large proportion of their that we are too close to 2008.
lenging year. In the first quarter wealth is still tied up iii the com- There has been quite a big cor- People have looked at the per-
of the year, business was almost pany they have founded. So rection iii asset prices over the fonnance of their financial port-
at a standstill, because of client tliey find themselves having pii- last two years and, if past folio-tlieir saviiigs, their retire-
paralysis. This is wliat our latest vate needs to find investment reflexes of the investor base had ment plan, their pension plan -
study, Barclays Wealth Insight bank solutions for their compa- continued, the corrections diuing 2008. Veiy few ai'e those
Vol. 9: Breaking the Mould - A nies, especially considering would have been more liinited who can say that "we made
Question of persomlity, seems opening up the capital at a cer- because the philosophy was money in 2008".
to malce apparent in a vivid tain point, selling it because "buy on Dips".

there may not be a successor in
manner.
the family, consider'ng on the Today the ability or the desire of I do not think that the present
It's a cliallenging economic contrary acquiig other compa- investors to go in is more limi- crisis will go away qriickly but
in
nies, etc. fed than it used to be. What the in terms of investment
environment and it is still market, human
unclear whetlier globally we study lias hied to focus on is financial can sometimes be
have bottomed out in the econo- Tlffs is where we increasingly why this is so. The conclusion is metrioiy
shorter than we expect. As the
tnic cycle or if the level of eco- foster encounters. This is not a really a veiy simple one: Across conclusion of the report states -
notnic activity we are wihies- day-to-day activity, but for the geographies, investors fail to act it is a year of caution.
sing today is sustainable. It is wealth management of ceitain funy on the inveshnent oppo%-
substantially lower than it was clients we attempt to provide nities that are out there. There is
in 2007. This affects some tl'+etn with solutions which are in an element of prudence resul-
3 2009 Diva 13

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