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Barclays
is one of the UK's leading banking groups. A new
management team successfully restored the company to full health after a rough ride through the
1990s. That decade started with a recession which hit Barclays hard. The
bank reacted with an inflexible new corporate strategy, but this arguably
created even more problems. Barclays' low point came in 1999 with an embarrassing
struggle to find a new chief executive and persistent takeover rumours. By 2003
however those problems had been put firmly in the past and the group began
re-establishing an international presence with purchases in Spain and South Africa. In 2007, Barclays agreed terms of a E67bn merger with
Dutch banking giant ABN Amro, but was subsequently beaten to that prize in a bidding war
against a consortium led by Royal Bank of
Scotland. It was to prove a lucky
escape, as the purchase of ABN Amro subsequently came close to destroying its
buyers. Barclays took
advantage of the turmoil within the banking industry in late 2008 to snap
up the substantial and well-respected
investment banking division of failed Wall Street giant Lehman Brothers for
a bargain price.
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