Barclays' Capital Raising Effort a Good Move?

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July 30 (Bloomberg) -- Bloomberg's Francine Lacqua reports on Barclays raising billions in capital and what it means to some investors. She speaks with Erik Schatzker on Bloomberg Television's "Market Makers." (Source: Bloomberg)

The stock is dropping.

What are people saying?

Barclays gave in to pressure with a plan to issue that $8.9 billion in new shares through a rights issue.

It was a bold but balanced plan to plug a larger than expected capital shortfall at the british bank.

Some say that there will be a hugely deluge of rights issue.

But barclays hopes to put this behind them and look at a better future.

Anthony jenkins has found himself not just a boring british banker but a bit of a mr.


How much can be to blame at the former ceo and how much of it is an dimmick to the way banking used to done and bring?

You're asking me if this mess was created by bob diamond, and it is partly by what happened under his watch.

He was a very well-known to run the business aggressively.

He could could have probably held more capital than it did at the time.

Some provisions, for example, forward protrusion's for ppi are related to what happened in the 1990's. there are concerns over the strength of the balance sheet.

Now the u.k. provincial regulation authority ordered it in june to increase the amount of equity it holds against total hazards, what we call leverage ratios.

Regulators are becoming tougher, sister european capital rules pushed at the end of last month.

Treasure on the bank.

The bank says it needs that 12.8 billion pounds to push the ratio above 3%. i know that barclays prospects are hinged greatly on the strength of the global economy and the recovery in the u.k. you talked about that.

What did anthony jenkins say?

He basically said that he is hoping things in the u.k. will get better.

He said that overall this is one british bank which he has positioned to face anything.

So he says there will be structural headwinds around the world.

He also said as regards to the u.k., he is actually asking authorities and the government regulation not to put too much of a burden on u.k. businesses.

He says now people need to be confident and to need to start lending again.

That will a succession for gdp and not go back to the recession we saw last year.

Thank you.

Great to see you as always.

This text has been automatically generated. It may not be 100% accurate.


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