Qualified advisers answering your
Financial Questions
call 0800 092 1245

Barclays investors fear for the future

It has been revealed that a number of banking research analysts have expressed concern at the additional cost which Barclays bank has taken on to accommodate the Middle East multibillion pound refinancing. Initially there had been some cheer that the bank had organised the refinancing with such strong investment partners but the disclosure of the cost of raising the finance compared to the UK government's rescue package on offer has concerned some followers.

The massive fundraising will also dilute the power of existing shareholders who were privately concerned that they were not allowed to take part in fundraising. The Barclays share price was down 5% today at £1.70 which is not far off the group's recent low and fully reflects the worries of some investors.

There are also concerns within government circles that Barclays bank seems intent on continuing a long-term high risk strategy for some of its core operations. In the current economic environment there are growing fears that unless the bank looks for a period of consolidation there could be further problems ahead in the short term. At a time when the authorities are looking to take away as much of the risk from the UK banking sector as possible, this development is the last thing they needed.

Share this..

Related stories

Financial Guides

Financial Calculators

Our useful calculators can help you get your finances in order:

Latest News


Helpful new tax year facts that could affect you and your money

Blog | Seven helpful new 2016/2017 tax year facts that could affect you and your money. Our recent online blog shares a brief outline on how to stay up to date.

Read more

Useful Links

Popular Searches

Please Enter More Details

Enter More Details