Either Lloyd's Bank is trolling the world, or it just became the first major financial institution to have given up on pretending that traders can be domesticated...
Lloyds Banking Group Plc is taking new rules to isolate its trading operations literally. Some traders will soon be physically separated from their colleagues and placed in a glass box to comply, according to people with knowledge of the matter.
About 120 staff at the Lloyds Bank Corporate Markets division, which includes foreign exchange and rates, will be put in the partitioned rooms to be finished over the next three to four weeks, said the people who asked not to be identified because the matter is confidential.
If it sounds like Lloyd's is literally putting fencing around traders, that's because it is supposed to be putting metaphorical fences around its traders...
The ring-fencing rules, formulated after the financial crisis, require U.K. lenders to shield core services, such as checking and savings accounts, from riskier banking activities by 2019. Lloyds, which took about 20 billion pounds ($28 billion) of U.K. taxpayers’ money to prevent its collapse almost a decade ago, has some 1,500 people working at 10 Gresham Street in the City of London where the split will be made, one person said.
"Cyril, Arthur, your group handles run-of-the-mill deposit accounts and your mate Nigel is trading goes not what to whom. We're going to have to put Nigel in the big glass box. Nigel, put down the phone, take off your clothes, say not another word about forex and climb into the cube. We do this for your own good. No texting, lads. Now back to work!"
If this is real, Barclays and Deutsche Bankers should be prepared to show up to work in the coming days and find huge panels of glass being moved around your trading floors. The revolution is here!