Barclays hit by toxic loan fears

shares fell again today ahead of what are expected to be difficult negotiations with the government over whether it will be allowed to participate in the asset protection scheme and at what cost.

Shares in the bank were down by more than 10% by lunchtime as analysts drew parallels with the amount of loans Lloyds put into the APS scheme at the weekend. Barclays reportedly has a much larger exposure than its rival to at risk loans.
Lloyds, in total, injected £260bn of loans into the Asset Protection Scheme in a deal thrashed out last week. As a result it will be 77% owned by the government.
Most of the risky loans came from Lloyds' recent acquisition, HBOS, but analysts were still shocked that Lloyds itself had sheltered £44bn from its own loan book under the APS.
Reports today suggested Barclays is still mulling the possibility of joining the APS, but its final decision will depend on what is in its shareholders' best interest.

It refused to join the last government bail-out of the bank sector, raising money instead from a group of Middle East investors. But the bank was criticised for the move, as it ended up paying more, even though it kept the UK government off its share register.
Weekend reports suggested Barclays may be considering putting up to £150bn in to the scheme, but is concerned about the harsh terms and conditions attached to Lloyds' participation.


[SigmaForex Customer Support Area]

Customer satisfaction is number 1

It's a well known fact that no business can exist without satisfied customers, Sigma support you with all your needs that have been chosen according to your demands.
Our slogan is to achieve the maximum level of satisfaction for our customers for that we built customer support which is availble 24/7 to be reached for all clients at any time.

Open Live Chat Now

Email Us

FAQs

Funding Methods

Withdrwal Methods

Trading Agreement