Is barclays in big trouble?

dunstonh

Why do you think Barclays are in trouble?

rainy_dave

mountainchrisriver,

Thank you for your polite post. Having read the link you provided, and not wishing to argue semantics, I have edited my signature, as you should now be able to see.

Dave

webtalk

dunstonh wrote: »

Why do you think Barclays are in trouble?

Nothing in particular.

But their shares are all over the place and they've apparently had to borrow large sums again. So I'm just wondering and thought I'd get the opinion of people who keep an eye on these things.

[Deleted User]

it was a rumour spread by people concerned with shorting in hedge funds

rail.link

Borrow large sums ?

Do you have a link ?

jamesd

Dave, rather than discuss it here, best to "report" one of your own posts to the forum team and ask them if they are content with the content of your posts and if not, what they would like you to modify.

Thanks for the market data!

When it comes to the site you'd linked elsewhere, I saw it pop under a full screen ad and left. Not worth the bother of sites that act that way when there are others around that don't. Hopefully useful feedback, but maybe it makes enough money to be worth it anyway.

jamesd

webtalk, expect lots of rumors and short sellers trying to exploit them to make money. Just the way it goes in turbulent times. Barclays is clearly solvent enough that even if it did have a reason to use short term borrowing from the BoE it wouldn't be a cause for long term concern.

I wonder if the memories of the boycott Barclays campaign and their trading in South Africa during Apartheid still has an effect on their business.

rheme

This is a link to Reuters new agency relating to the banking sector and Barclays

http://investing.reuters.co.uk/news/articleinvesting.aspx?view=CN&symbol=BARC.L&storyID=193173+02-Nov-2007+RTRS;&type=qcna

deaglecat

The rumour is that they are short of liquidity and have exposure to subprime (esp in the US) also that they approached BoE already.

http://www.bloomberg.com/apps/news?pid=20601102&sid=aWluHGhgk.BY&refer=uk

The rumour is given credence by the reported statements of Northern Rock who appear to be claiming that they are not the only borrower who has taken advantage of BoE funding.

http://business.guardian.co.uk/banking/story/0,,2204473,00.html?gusrc=rss&feed=networkfront

Against that, Barclays were reported to be buying back their own stock - and this would be difficult to justify if they had some material facts to disclose.

http://investing.reuters.co.uk/news/articleinvesting.aspx?type=bankingFinancial&storyID=2007-11-02T170114Z_01_L0298599_RTRIDST_0_SP_PAGE_012-L0298599-OISBN.XML

FWIW - when Allisdair Darling increased the compensation on the FSA scheme - he did this when bank shares were falling sharply - allegedly due to hedge funds pushing the price down.

Basically, you can't really tell what is going on at the moment - the lack of transparency - coupled with the complex financial instruments used - make it difficult to know who is really carrying the undoubted losses on US subprime.

It is a febrile atmoshpere at the moment and there is a risk that fear is winning out over greed.

Hope this helps

Deag

webtalk

FWIW

What does this stand for?

Thanks very much for all your feedback. I'm finding it both useful and educational.
:beer: