Barclays may raise capital through markets

14-10-2008

Barclays may raise capital through markets
Barclays said it is considering "a number of options" including raising capital from the markets instead of taxpayers to reach government targets.

The bank added it would "update the market" on its plans by the end of 2008, the government deadline for banks to increase their capital.

The government wants the UK's top banks to increase their Tier 1 capital – a measure of financial strength – to an average of ten per cent by a combined £25 billion as part of its bailout deal.

A £25 billion fund has been made available to the banks and several banks, including Barclays, are expected to use the facility.

However, Barclays is considering "capital raising" instead, as it did in July when the bank raised £4.5 billion from institutional investors.

HSBC is the only bank so far to confirm it will not be asking the government for cash.

The bank said it has already met its target by pumping in £750 million into its UK business from internal resources instead.

Any bank that accepts the government capital will also have to accept restrictions on executive pay and make promises to continue lending to small businesses and individuals.

Bookmark with:
Bookmark with: Digg Digg Bookmark with: Del.icio.us Delicious Bookmark with: Reddit Reddit Bookmark with: StumbleUpon StumbleUpon Bookmark with: Google Google Bookmark with: Technorati Technorati Bookmark with: Netvouz Netvouz

Latest News:

Search News
News Front Page
Accountancy / Tax
Advertising / PR
Armed Forces
Automotive
Aviation / Aerospace
Banking / Finance
Charities / Voluntary
Childcare / Youth
Construction / Property
Customer Services
Education / Training / Teaching
Emergency Services
Engineering / Electronics
Entertainment / TV / Theatre
Graduate Roles
Health / Beauty
Hotel / Catering / Restaurants
HR / Recruitment
Insurance / Pensions
International / Overseas
IT / Internet
Legal
Management / Business
Manufacturing / Industry
Media / New Media / Creative
Medical / Healthcare
Pharmaceutical Industry
Public Sector
Retail / Wholesale
Sales / Purchasing / Marketing
Science / Technology
Secretarial / PA / Admin
Skilled / Semi-skilled Manual
Telecommunications
Transport / Logistics
Travel / Tourism / Leisure