Abu Dhabi Royal Family outmanoeuvres Gordon Brown (re Barclays)

caveman38

In laymans terms what are the implications for depositors. Unfortunately I am not that clever as to fully understand what is going on. Can the government still nationalise it if necessary or if the Saudis became majority shareholders where do we stand with our savings.

olly300

caveman38 wrote: »

In laymans terms what are the implications for depositors. Unfortunately I am not that clever as to fully understand what is going on. Can the government still nationalise it if necessary or if the Saudis became majority shareholders where do we stand with our savings.

Savings are protected up to £50,000.

geoffky

She has put in a clause where if the government was to take them over they would have to pay double what they are worth now..hence the backers get double the shares they originally bought...What a clever girl she was..

StevieJ

geoffky wrote: »

She has put in a clause where if the government was to take them over they would have to pay double what they are worth now..hence the backers get double the shares they originally bought...What a clever girl she was..

The govt could nationalise with no recompense, would not be so clever then.

epz_2

Given all these bank details are pretty much sitting on a computer some where whats to stop the government moving all the depositors to northern rock and letting the rest of the bank go bust, the mortgage book can be sold on to whoever wants it.

fact is it would be political suicide to give vast amounts public money to a foreign dictatorship after its directors refused uk help, sod them.

if your savings are safe then you are ok, if you owe money then its the creditors problem and i am sure the gov could enforce the terms.

harryhound

Gulf war number 4 getting ready?
Perhaps Barclays Arab option holders will come in with a further tranche of money or at least a guarantee ?

Meanwhile here in the UK Barclays staff comment on the situation:

Originally Posted by BarclaysManager
Do I detect some closet racism? Why exactly does it matter to you or anyone whether the finance comes from Arabic companies and person or from HMG?

And to correct you, the amount repaid in our deal is comparable to what we would lose to HMG. Do you think our shareholders would have voted for it otherwise? :rolleyes:

Also consider the hold up nature of this forced recapitalization - which wasn't even needed, might I add - the FSA, one part of the government, tells us we need more money to make it happy - lots more money. It does so at a time when the credit markets are difficult at best. Then, another part of the government comes along with the offer of finance in return for a massive stake in the company.

Do you not see what might be slightly wrong with that?

Nov 11 2008 - In spite of difficult market conditions Barclays has increased its lending and overdrafts to small businesses by 5.3.%, from £9.6 billion September 2007 to £10.1 billion September 2008.
http://www.newsroom.barclays.com/Con...7&NewsAreaID=2

Dec 15 2008 - Barclays commits to making at least a further £1.5 billion available to SMEs in 2009, bringing its total commitment to some £16.5 billion by the end of 2009.
http://www.newsroom.barclays.com/Con...7&NewsAreaID=2

Do you write for the Daily Mail or something? At least do SOME research first.