Barclays wants to cut ties with Odey Asset Management: here’s why

July 03, 2023 07:00 AM PDT | By Invezz

Barclays wants to cut ties with Odey Asset Management: here’s why — Image source: Invezz

Why is Barclays cutting ties with OAM?

The universal bank is terminating its relationship with the hedge fund primarily due to the recent allegations of sexual assault against Crispin Odey – the Founder of Odey Asset Management.

In June, both Financial Times and Tortoise Media reported that 13 women had accused Crispin Odey of sexual assault or harassment over a period of 25 years.

Consequently, OAM ousted its founder even though he denied the allegations. Financial firms, including Canada Life and Schroders have recently extricated themselves from Odey Asset Management as well.

At writing, Barclays shares are down roughly 5.0% versus the start of the year.

U.S. lenders also reviewing links with OAM

Barclays has already informed the Financial Conduct Authority that it’s terminating its relationship with OAM, as per Financial Times. But the FCA refused to comment on the report today.

The news arrives shortly after FT reported that the regulator restricted the movement of cash and assets from OAM in hopes of restoring order at the investment firm following Odey’s departure.

On Monday, sources also told the Financial Times that JPMorgan, Goldman Sachs, and Mogan Stanley – Odey Asset Management’s prime brokers were also reviewing their ties with the hedge fund.

As of last month, Crispin Odey was managing about $1.2 billion himself of the $4.4 billion the firm had under management in total.

The post Barclays wants to cut ties with Odey Asset Management: here’s why appeared first on Invezz.

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