Barclays Bank under pressure for taking the Middle East funding
While Barclays Bank may have assumed taking the Middle East funding in order to retain total independence from any conditions attached to the government rescue bid was a good move in the short term many investors are up in arms now that the increased price of the funding has been revealed. The cost of the £7 billion raised was substantially higher than if the bank had used the governments bailout fund as many had thought it would.
Many larger investors at the bank are concerned that directors and key personnel have placed their own positions above that of shareholders in pursuit of the right to pay bonuses this year and retain total independence from any government trading conditions. It will be interest to see how investors react on Monday after the fall of the share price on Friday and whether this fundraising will look "dirty cheap" over the next few months.
There is a growing feeling that the bank has given away too much control in exchange for the £7 billion of the additional funding at the expense of existing shareholders. There has been no formal comment or response to the claims by Barclays directors but they can only remain silent for so long.
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