Barclays, the UK’s second largest bank by
assets, has refused to comment on speculation that it is looking at
acquiring the US-based retail bank SunTrust.

Reports that the bank wants to spend £12bn on
SunTrust have re-emerged after being linked to buying a large US
retail bank in March. This is thought to be in an effort to
supplement Barclays’ investment banking presence in the
country. 

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At the time the bank was said to be looking at
one of the bailed-out US banks as a potential target, including
SunTrust, PNC Financial and US Bancorp, the parent company of US
Bank, the sixth-largest bank in the US by assets.

On a separate note, Christopher Wheeler, an
analyst at Mediobanca Securities, sent Barclays’ shares rising
after he forecast that the bank would be worth more if it split its
retail and investment banking divisions.

The bank would not comment but instead
reaffirmed the bank’s support for a universal banking
model. 

Antony Jenkins, chief executive of global retail banking told
the UK’s Future of Banking Commission in June: “We’re committed to
the universal banking model. We believe that it is a superior model
in terms of meeting the needs of our customers, shareholders and
broader society.”

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“We think that the universal banking model actually allows us to
manage risk more effectively, given that there is asymmetry between
different parts of the banking system.”

In the first quarter, SunTrust, the
seventh-largest US retail bank by deposits, reported a net loss of
$229 million, compared to a net loss of $875 million, in the
corresponding period last year.

Its 1,678 branches and 2,828 ATMs are
located primarily in Florida, Georgia, Maryland, North Carolina,
South Carolina, Tennessee, Virginia, and the District of
Columbia.