Tuesday, July 30, 2013

Barclays to sell shares to boost capital position





LONDON — Barclays plans to sell 5.8 billion pounds ($8.9 billion) in new shares to bolster its balance sheet amid new regulatory requirements meant to prevent a repeat of the 2008 financial crisis.


The sale to existing shareholders was announced along with the bank’s earnings statement, and came after the Prudential Regulation Authority told Barclays and other lenders to increase their capital as a buffer against future crises.


The regulator’s report increased pressure on banks, which are being ordered to hold more capital even as they are being pushed to lend to businesses and families to kick-start the economy.


The overall shortfall for Britain’s lenders was estimated at 27.1 billion pounds.


Barclays reported net income of 671 million pounds in the first half of 2013 compared with 148 million pounds last year.


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Tags: Barclays , Britain , Financial crisis



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