New York's attorney general filed a lawsuit against Barclays (BARC) last month relating to its "dark pool" trading operations, which some analysts think could trigger a hefty fine. Dark trading allows clients to trade blocks of shares while keeping prices private, and it's alleged that Barclays favoured higher frequency trading clients.
Certainly, more misconduct-related misery is bad for sentiment, and the shares have fallen over 10 per cent since the news broke. But broker Espirito Santo estimates that only 2-3 per cent of equities-related revenue is generated through the dark pool operation, so investors may do better to focus on restructuring progress when the bank's half-year figures appear on Wednesday. After all, Barclays is in the process of dramatically scaling back its investment bank and - if successful - that could significantly bolster its return on equity.
