Barclays Capital is planning a big push across all areas of investment banking in Latin America in the coming months, buoyed up by its acquisition of Lehman Brothers. "In the past we have been focused on the fixed-income business in the region but it has been challenging getting a substantial presence in Brazil. But now that should change dramatically," says Carlos Mauleon, head of Latin American debt capital markets and investment banking at Barclays Capital. "With the Lehman acquisition we have gained a whole new strategic angle with M&A and equity capabilities. This will help us leverage the corporate sector business significantly. That is our mission for the next year."

Banks must work with regulators to shape a prosperous future.

Barclays found the discipline to walk away from the ABN Amro deal, the determination to grab Lehman and the smarts to take the tough decisions quickly with its new US business. The same hunger for growth courses through its retail and commercial bank. But bad assets are the cost to pay. Investors might wonder who is keeping things under control at Barclays. Peter Lee reports.

Big names have been recruited in ECM; they must help pay the bill for a secondary market presence.

In the summer of 2008, following failed offerings from HBOS and RBS, the UK Treasury commissioned a Rights Issue Review Group consisting of bankers, investors and regulators, to examine the equity-capital-raising process in the UK and recommend ways to make it more efficient and orderly. John Varley, chief executive of Barclays, agreed to be one of its members. The irony would become apparent soon.

Barclays was the bank that many expected to fail. Recapitalized, with its earnings power enhanced, safe from the clutches of the UK taxpayer, it may emerge as one of the big winners from the crisis. The bank’s leaders expect to build dominant positions in both retail and investment banking. What could still throw Varley, Diamond & Co off course?