Barclays bank - next to go?

abaxas

Rumours are flying about.

That barclays are the first bank to go cap in hand to the goverment. IE first to ask for bail-out money :eek:

Scary sh*t!

1694

Dont worry it won't actually go, in any real sense of the word, be more concerned with the cost of saving it.

MadSage

Unlikely, I would say. They look pretty safe going by their CDS rating. ICICI are by far the most likely to go, and considering events today and how fast the Icelandic banks went down, it could be within days. See this thread: http://forums.moneysavingexpert.com/showthread.html?t=1209471

I,_Brian

I think you'll find all Barclays are mainly looking to do is cover the costs of purchase of Lehman's investment assets - offices alone I think cost $1.5 billion.

Noz

Doubtful, Barclays were reluctant to agree to the government's bail-out plan in the first place.

opinions4u

Not scary.

Tis what the plans are there for.

PasturesNew

There is no need to worry about any UK bank going under. The Govt will support them because if any bank is actually allowed to fail - taking with it payrolls of companies, little old ladies' pension money and savings, house purchase/sales transfers ... it'd be the end of the country as we know it.

So, forget all rumours. Don't panic, as they say. It can't actually happen because we are so dependent on the movement of money to live.

They would all just shuffle about and take each other over etc. they have to or we might as well all go home and hide under the floorboards.

rjm2k1

I wondered that about Barclays too but they do tend to take part in the game when they need to even if they disagree with the game itself. If the government is offering help to oil the wheels of banking then why shouldn't they take part in it too? They were the ones who brought the cash machine charges to a head and because of that we largely have free withdrawals from most banks cash machines.

1694

rjm2k1 wrote: »

I wondered that about Barclays too but they do tend to take part in the game when they need to even if they disagree with the game itself. If the government is offering help to oil the wheels of banking then why shouldn't they take part in it too? They were the ones who brought the cash machine charges to a head and because of that we largely have free withdrawals from most banks cash machines.

Because it is highly immoral.

Would you take money from a parent without their consent, use it to make a profit and charge their children interest on the money you took?

No it's not an analogy.

rjm2k1

One of the big issues at the moment is the lack of inter-bank lending going on, the government backing is there to help improve this situation, does it not therefore make sense that one of the biggest banks takes part in the scheme?

The whole thing could actually provide a return for the taxpayer in the long run.

1694

rjm2k1 wrote: »

One of the big issues at the moment is the lack of inter-bank lending going on, the government backing is there to help improve this situation, does it not therefore make sense that one of the biggest banks takes part in the scheme?

The whole thing could actually provide a return for the taxpayer in the long run.

If the money used is borrowed and interest charged it has to be repaid.

If the banks could make enough profits to cover the money they borrowed themselfs why are we in this mess.