Barclays (BCS) On The Prowl For U.S. Retail Banking Assets

Barclays PLC (NYSE: BCS) is after another major acquisition in the U.S. financial system, after buying Lehman Brothers Holdings Inc.’s North American operations at the height of the recession, according to a report in the Wall Street Journal citing people close to the matter.

The sources said that the U.K.-based bank is looking for a financial retail institution that it can purchase at a good price to expand its deposits and build on its presence in the U.S. The bank has dispersed an internal team to seek possible targets, but the sources said that no purchase is imminent.

Barclays is also considering acquiring additional retail assets in Western Europe, such as Portugal and Italy portfolios of Citigroup Inc. (NYSE: C).

A report from Credit Suisse on Tuesday said that Barclays will need to add more deposits if the bank is to grow.

Barclays has done a better job than its rivals in standing tall during the economic crisis, and has such positioned itself advantageously to expand into the U.S. by promoting its brand. The bank will play host in a ground-breaking ceremony this week on the new Barclays Center basketball arena in the Brooklyn borough of New York City.

There are going to be plenty targets that Barclays can choose from in the U.S.; but the majority are small and even fewer are likely healthy enough to bring the attention from a large financial institution. Many of the high profile candidates have been acquired through government induced takeovers.

Among the possible targets in the U.S. and overseas include the Atlanta-based SunTrust Banks Inc. (NYSE: STI), Fifth Third Bancorp (NASDAQ: FITB) of Cincinnati and Comerica Inc. (NYSE: CMA).

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