Barclays Mulls Acquisition To Help Split Off Retail Arm : FT

(RTTNews) - British lender Barclays plc (BCS, BARC.L) is considering an acquisition as the quickest way to gain the extra licence it needs to hive off its retail bank under new rules forcing big UK lenders to split in two, The Financial Times reported.

The report said that the plan underlines how Barclays faces a bigger challenge than rivals to comply with the so-called "ringfencing" law, which forces large banks to shift their retail operations into separate subsidiaries from other activities such as investment banking by 2019.

John McFarlane, the bank's new chairman and acting chief executive, last week told executives working on the changes to either acquire an entity with a banking licence or apply for a new one. Barclays is the only bank that needs an extra licence for its ringfenced unit, the report said.

Las week, British lender Barclays plc and Barclays Bank plc announced that Chief Executive Antony Jenkins would depart from the company after serving at the helm since August 2012. He has also been a member of the Group Executive Committee since 2009.

Barclays appointed John McFarlane as Executive Chairman pending the appointment of a new Chief Executive. McFarlane will run the bank until a replacement is found. The change is expected to be effective July 17, when McFarlane retires from FirstGroup plc (FGP.L).