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Barclays about to go bust?!

Discussion in 'General Board' started by devolution, Sep 8, 2007.

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  1. devolution

    devolution Active Member

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  2. Domain Forum

    Acorn Domains Elite Member

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  3. GWing

    GWing Retired Member

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    oh oh,

    everyone knows what happens now, whether they are in trouble or not. The speculation might lead people to withdraw their cash and reduce Barclays liquidity even more, until boom.

    This might be a self fulfilling prophecy.

    Reports Barclays borrowed several billions last week from the Bank of England. I hope they got charged the £35 overdrawn fee :D
     
    Last edited: Sep 8, 2007
  4. Pred United Kingdom

    Pred Well-Known Member

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    well, i've got a stinker of an overdraft so if i got to lose that i'd be laughing, for those with cash diferent i guess.

    i won't be losing any sleep over them, they've earned enough out of me over years.
    i'm sure they'll be fine though, just a cashflow problem :cool:
     
  5. binny

    binny Active Member

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    It would only take one bank the size of Barclay's to go down for a recession to start.
     
  6. Pred United Kingdom

    Pred Well-Known Member

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    God, don't!

    Not just that, but if the financial markets are that screwed, other banks less prudent would go down too.
    Housing market has died where i live too. Nothing sold in months
     
  7. binny

    binny Active Member

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    Recessions start with banks increasing the rates they lend to each other at then to try and stablise things the central banks will come in and help the banks who are in danger of going down which is whats happening here. The risk is that one of the big banks is in too much trouble to be baled out and goes down, then it's a domino effect.........could mean some cheap domains though :rolleyes:
     
  8. aZooZa

    aZooZa Well-Known Member

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    For Barclays to borrow £1.6bn to cover short-term inter-bank commitments is nothing to worry about. This is all an adjustment for the debacle in the USA. If in doubt, call up their balance sheet. Barclays shares are probably a good buy right now, but I personally detest Barclays so no recco from me :D
     
  9. olebean United Kingdom

    olebean Well-Known Member

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    There are always other ways to raise capital.. has anyone looked at barclays KPI and liquidity ratios?
     
  10. aZooZa

    aZooZa Well-Known Member

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    I think if they were looking to raise capital per se, they'd do a rights issue or something.
     
  11. olebean United Kingdom

    olebean Well-Known Member

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    It is an option, they could also offer preference shares! which maybe a better option and less public ;)
     
  12. GWing

    GWing Retired Member

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    thing is if they try to raise capital through selling shares. Their share price plummets and they'll need to sell more shares to raise less capital. This means they need to sell even more shares to raise even less cash. That's a one way downword spiral. The more shares you sell, the more people get worried.

    Reports last week said Bank of England baile dout a company last week to the tune of several billions. They refused to name which bank they lent the money too, but looks odds on to be Barclays.

    Is Nick Leeson still working in Barclays Call Centre?
     
    Last edited: Sep 9, 2007
  13. stevebrowne United Kingdom

    stevebrowne Active Member

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    I'm certainly gong to grab some cash today from Barclays whilst I can... Some people are syaing that 50% or more of Barclays machines had no cash in them yesterday, and connect cards being refused...
     
  14. deconstruction United Kingdom

    deconstruction Well-Known Member

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    yeah i agree ... sound like people are doing this already...

    i am leaving my cash put, never had a problem with barclays...
     
  15. stender United Kingdom

    stender Well-Known Member

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    Unfortunately they aren't going bust. Their crest settlement system crashed and died which is the system which is used to settle all uk share deals. This is why they needed to borrow the money.
     
  16. devolution

    devolution Active Member

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    Looks like one big ?!!*£@

    It seems the banks are crumbling...

    http://news.bbc.co.uk/1/hi/business/6994328.stm

     
  17. BFTUK United Kingdom

    BFTUK Active Member

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    Northern Rock problem is a far bigger concern than the technical issue Barclays experienced.
     
  18. GWing

    GWing Retired Member

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    nothing wrong with northern rock guys,

    it's just they run out of sources to find new money to lend to new customers. It's still going to make a huge profit at the end of the year.

    As Northern Rock doesn't have any / many saving account customers, they don't have much reserves apart from profit to lend to new customers. So this Bank borrows money from other banks to lend to it's customers. Unfortunatley other banks have stopped lending them money at an affordable rate.

    Northern Rock shares look very good buy at the moment imo
     
  19. binny

    binny Active Member

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    The irony of all this is that Barclays are probably going to take Northern Rock over now the share price has crashed :???:
     
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