Barclays about to go bust?!

[devolution]

http://newsvote.bbc.co.uk/1/hi/business/6972537.stm

 

[GWing]

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

 

[PredPred is verified member.]

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

 

[binny]

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

 

[PredPred is verified member.]

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

 

[binny]

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

 

[aZooZaaZooZa is verified member.]

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

 

[olebean]

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

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

 

[aZooZaaZooZa is verified member.]

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

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

 

[olebean]

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

It is an option, they could also offer preference shares! which maybe a better option and less public

 

[GWing]

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?

 

[stevebrowne]

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...

 

[deconstruction]

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.

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

i am leaving my cash put, never had a problem with barclays...

 

[stender]

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.

 

[devolution]

Looks like one big ?!!*£@

It seems the banks are crumbling...

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

Concerns over emergency funding for the Northern Rock bank could pull fellow banks on the UK markets into negative waters, analysts have said.
An emergency lending facility to Northern was agreed by the Chancellor, Alistair Darling, on advice from Mervyn King, governor of the Bank of England.

Northern Rock is one of the UK's largest mortgage lenders.

...

However, the market is watching to see how its shares perform on Friday, as well as those of peers such as Bradford & Bingley and Royal Bank of Scotland.

The disclosure is expected to rock financial markets, Mr Peston said.

 

[BFTUK]

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

 

[GWing]

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

 

[binny]

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