Barclays shares suspended 'temporarily'

WTF?_2

Hmmm, dropped 9.1% in the morning and then suspended from trading:

http://www.bloomberg.com/apps/news?pid=20601102&sid=aqdsEY9MqcjE&refer=uk


Doesn't look good - they've been the subject of much speculation about sub-prime losses for months. Rumours said a 10bn write-down but they've denied that.

Royal Bank of Scotland is talked about in relation to sub-prime losses too. Alliance and Leicester and Bradford and Bingley are also the subject of speculation about the viability of their business in the wake of the credit crunch caused by US sub-prime (a la Northern Rock).

SquatNow

Barclays are slowly going tits-up.

They've borrow money from the BoE overnight twice this year.

Then they (according to analysts) were the big taker for the 90bn+ euros the ECB issued on a 3 month loans.

Then recently they went to the fed and asked for $15bn loan.

And currently they are trying to get the rules changed so the BoE can lend in secret.

Anyone with money in Barclays would be wise to move it elsewhere.

BrandNewDay

I've got money in both those banks (RBS and Barclay's) - I do hope I don't have to queu up for a panic.

free4440273

They are meant to be making a statement later this month: No doubt they will blame any losses on the American subprime mortgage market :rolleyes:

WTF?_2

BrandNewDay wrote: »

I've got money in both those banks (RBS and Barclay's) - I do hope I don't have to queu up for a panic.

Although the share prices are plummeting, I don't think the situation is quite the same as Northern Rock.

They've basically had to take huge losses - not good for their shareholders. But unless there's a run on the bank (like there was with NR) there's no need to worry about your cash. On the other hand, if it even looks like there might be a run you'd be as well moving your cash before you end up in the queue.

A&L and B&B are a different kettle of fish, they have a similar problem that Northern Rock had in that their business models rely to a large extent on borrowing money from the markets and securitising the loans they make with it. Something no longer possible and not likely to be possible anytime soon. That means that without a suitable source of funds, they actually could be in danger of going belly up.

pandhandj

A&L and B&B are a different kettle of fish, they have a similar problem that Northern Rock had in that their business models rely to a large extent on borrowing money from the markets and securitising the loans they make with it. Something no longer possible and not likely to be possible anytime soon. That means that without a suitable source of funds, they actually could be in danger of going belly up.


But surley Gordon will step in to save the day (via the BoE) and spend my cash to save these businesses and therefore let them continue with a business model that got them into this situation in the first place?

SquatNow

The rule in these situations is simple: The smart man panics early.

Generali

The shares were suspended to allow for an orderly market, it is a normal part of what exchanges do when the price of a stock is falling quickly.

As !!!!!!? says, they're believed to be sitting on bigger losses than they're letting on. We'll see.

In a similar vein, I read an interesting piece of research from a research group called Greed and Fear (excellent name!) about the possible positions of the big investment banks (the Goldmans and Citigroups of this world). It didn't make for pleasant reading over breakfast on a Friday morning!

kunekune

Argh, if only we could move!

We moved house three weeks ago and have informed the bank and various other people of our new address, but as yet no mail has come to us at this address. The change of address seems to take a long time to go through their system. So, as I read the identification/address verification requirements for opening new accounts, we are stuffed for a little while.

Fingers crossed ...