Barclays Set For £4 Billon Cash Call
In a move which many saw coming some time ago it seems that Barclays is set to lodge a call for £4 billion from shareholders to repair the company’s balance sheet. If press reports over the weekend are correct, the management of Barclays is in talks with China Development Bank and Singapore based fund Temasek about additional cash injections, with both showing substantial losses against earlier stakes they took in the group.
While the management will need to put forward a strong argument for injecting additional capital into the group at this time, there is a feeling that the fund raising is a valid move. While others have rushed in over the last few weeks, Barclays has been a little more subtle and allowed others to test out the market. The fact that the two investors mentioned above may be interested in increasing their stakes should strengthen the move to raise funds.
The UK banking industry is very much in the firing line, as it has been for a few months now, and while the situation does not look like changing in the short term there are hopes that they can start to fight back over the next few weeks. When you also consider that the government cannot afford another UK bank collapse, there seems to be some support behind the scenes.
Share this..
Related stories
Is the Bank of England scared of inflation?
Fears are growing regarding the potential threat of inflation with the Bank of England letting it be known that inflation could be a problem in 2010 and we could see a surprise increase in UK base rates. This comes despite the release of minutes from the April MPC meeting at which all members voted in favour of retaining base rates at their current low although concerns were voiced regarding infla...
Read MoreRoyal Mail at centre of performance fixing allegations
The postal regulator Postcomm has this week revealed that claims by the Royal Mail that nine out of ten letters and parcels are delivered the next day have been thrown into question. It is believed that an investigation by the regulator found alleged systematic fixing of performance figures with allegations that some members of staff were able to identify "test mail" sent from independent companie...
Read MoreWill loyalty cards rescue the UK retail market?
Over the last few days we have seen a significant number of retail companies revamping and relaunching their loyalty cards. Tesco has spent in the region of £150 million on a relaunch of their Clubcard operation although this just appears to be the tip of the iceberg. There is a feeling among retailers in the UK that loyalty cards will not only attract more customers that they will in due course...
Read MoreConcern and confusion over MG Rover payout
There is concern and confusion over a proposed £12.5 million payout to former MG Rover car workers which was promised by the former directors of the company. Despite the fact that it is five years since the company went under, and the directors agreed to put aside £12.5 million to compensate workers, HBOS has apparently stepped forward with a £23 million debt claim. While the so-called "Phoe...
Read MoreAre US banking reforms purely cosmetic?
John Varley, the chief executive of Barclays bank, today suggested that Pres Obama's plans to reduce risk in the financial sector would not prevent another financial crisis in the future. This comes at a time when yet again the worldwide banking sector is under pressure and under attack from various governments and authorities around the world. Indeed Pres Obama recently suggested a bank levy to i...
Read More