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Barclays Bank 12.8 Million Black Hole

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Barclays Bank 12.8 Million Black Hole

Old 1st Aug 2013, 14:48
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Barclays Bank 12.8 Million Black Hole

So a 12.8 million black hole has been found in Barclay's accounts. They are selling more shares to fill it and the result is a fall in the value of their existing shares.

May I suggest an obvious way of raising money for them? Why don't they increase their savings interest rates above the existing absurdly low levels to attract savers money?

Seems an obvious solution to me. After all banks are charging much higher rates on loans and mortgages and as for credit card rates ...

Here's a link:

BBC News - Barclays stock hit by 5.8bn cash call to plug shortfall

Last edited by Flap 5; 1st Aug 2013 at 14:55.
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Old 1st Aug 2013, 16:21
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Erm - I think you mean billion?
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Old 1st Aug 2013, 16:38
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To be fair to Barclays this is not a 12.8 billion "black hole" - the regulations have changed, requiring banks to hold more capital to cover possible losses, so Barclays need to raise this money from somewhere.
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Old 1st Aug 2013, 16:45
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Barclay's needs all those additional US$ billions just to pay off all the fines they've already received (whilst not admitting any liability and paid quite voluntarily) from mainly the USA and UK authorities. Expect similar huge fines from the EU and other individual European countries in 2013/4. Together with perhaps quite similarly spectacular fines to come and issued by the financial authorities of countries like Singapore, the UAE, other Gulf and ME states and in particular, China...?! Other banks are also exposed I hasten to add!

I imagine the US$ billions that the USA especially has been able to squeeze out of mostly foreign banks and corporations over the past few years has been a very useful source of revenue also...
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Old 1st Aug 2013, 17:00
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This is just a part of the ongoing Basel III process: Basel III - Wikipedia, the free encyclopedia
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Old 1st Aug 2013, 17:42
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Announced today Barclays are in profit, so Camerloon will start selling shares off to the City at below their value
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Old 1st Aug 2013, 17:50
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Announced today Barclays are in profit, so Camerloon will start selling shares off to the City at below their value
Since Barclays borrowed no government money and the government therefore has no shares, can you explain how CMD is going to do that, Lon ?

Two banks had debts that would have crushed them :

1)Royal Bank of Scotland*
2) Halifax Bank of Scotland*

The Prime Minister, Gordon Brown* ( MP for Kirkcaldy and Cowdenbeath) pressured Lloyds to save the shivering corpse of HBOS which then dragged them into the deep mire.

* very sharp readers may note one characteristic linking these three .entities.

Last edited by AlpineSkier; 1st Aug 2013 at 18:01.
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Old 1st Aug 2013, 17:53
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I think it is Lloyds that attracted the interest of the media WRT profitability:-

BBC News - 'No rush' to sell Lloyds shares as bank returns to profit
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Old 1st Aug 2013, 22:00
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Yeah, billion, whatever. When it gets to billions we tend to lose track of the value.

I still think that increasing savings interest rates is a better idea than creating new shares - which only end up reducing the value of existing shares.
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