Sunday, May 11, 2008
Barclays squeeks, “Excuse me, you know I said I didn’t need any cash, well…”
Barclays will this week disclose whether it plans to go ahead with the third rights issue by a big British bank in a month, when it gives an interim trading update on Thursday. A dramatic jump in write-downs linked to the credit crunch could force the bank to tap shareholders for cash, or more probably see funds from an outside investor such as Singapore's Temasek or China's Development Bank brought in. If the Chinese fall for this, they deserve to lose their money.