Davos WEF
Davos WEF

Volcker rule and Dodd-Frank are here to stay, and banks need to get used to it: Barclays CEO

Creating new ring-fenced bank in UK: Barclays CEO

Barclays CEO Jes Staley has detailed how his company has adjusted to the different banking regulations in the United States and believes that his peers in the sector need to get used to them.

"I think the Volcker rule is very clear, they want to move Wall Street from managing proprietary and trading desks to being agents and broker dealers for the broader capital markets," he told CNBC at the World Economic Forum in Davos.

"Barclays has gotten there very quickly, we are not in the proprietary trading business in our investment bank, we like the broker dealer model, we like the consistency of our revenues, we like the revenues versus risk that we have, which I think is where the regulators want us to be," he added.

He added that he believed that Dodd-Frank - which refers to a comprehensive and complicated piece of financial regulation born out of the recession of 2008 - is going to stay.

"I think Volcker is going to stay, and I think the banks need to operate on this," he said.

Concerning trend in the UK

Political crisis not necessarily economic crisis: Barclays CEO

On the U.K. economy, he said the country has held up well despite the uncertainty thrown up by the country's vote to leave the EU, but a series of metrics has started to worry the chief executive.

"There is a sign ... Which is somewhat concerning which is you are seeing consumer credit grow, consumer spending grow but consumer confidence is beginning to weaken," he said.

"And if you have consumer confidence weakening while consumer credit and spending is growing that could portend a concern that I think the (Bank of England) Governor is talking about."

In a speech this week, Governor Mark Carney said there were signs that growth in the U.K. was relying more heavily on consumer spending. This suggests less sustainable growth compared to more investments or exports and Carney said it did not bode well for the future.

Staley added that consumer spending had held up very strongly following the Brexit vote, explaining that the use of consumer credit has gone up. He predicted that the country could see a benchmark rate rise of around 200 basis points, which was unheard of just a year ago.

DOJ settlement

Barclays CEO: Will deal with DOJ over time, it will be fine

The British bank is yet to reach a settlement with the U.S. Department of Justice over the mis-selling of mortgage-backed securities, but it hopes for a fair settlement that correctly reflects the agreements made between the U.S. banks and officials.

Coming just days after Deutsche Bank reached a deal with the U.S authorities, he said that banks needed to atone for their mistakes. But he added that any deal needed to be fair.

"We will deal with the Department of Justice with this issue over time and we'll be fine," he said.

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