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JimDiGritz

Barclays.... The Uk's Enron?

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I saw these links in a post over at the LATOC forum, and have done some digging and am now very concerned that Barclays is in world of pain.

http://postmanpatel.blogspot.com/2009/01/y...ccounts-by.html

So the rub is , that if Barclays have been lying about the value of their very many assets and refused to take impairments so maintaining the fiction (which they have done for years) that they have made profits - they are, by by refusing to "come clean" , put themeselves in the position that they cannot use the taxpayers money to scrub their balance sheets of all the shit they have been hiding and overvaluing.... for years.

and this article from todays Times:

http://business.timesonline.co.uk/tol/busi...icle5533488.ece

...

Because Barclays previously snubbed financial support from the Treasury when Britain’s banks were recapitalised in the autumn, sources close to the negotiations believe that it will be excluded from further rescue packages – unless it opens its books to the Financial Services Authority.

There was also speculation last night that Barclays faces further write-downs in the value of collaterised debt obligations (CDOs) – specialist financial instruments to which the bank’s investment banking arm, BarCap, is heavily exposed.

Moody’s, the credit rating agency, downgraded the rating on a particular form of CDOs widely held by BarCap on Thursday and there have been rumours – denied by both parties – that last week’s resignation of Sir Nigel Rudd, the Barclays deputy chairman, was due partly to differences with the chief executive, John Varley, over how such instruments should be valued in the bank’s books.

This may very well be a false alarm, but the fact that the City has started to short Barclays (as soon as the ban was lifted) seems to indicate that the traders are very bearish about what is going to be exposed in Barclays books when they have to expose them.

Jim

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  • 284 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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