Barclays: $20 Billion short
In response to the UK Banking watchdog's scrutiny, Barclays plans a capital raising of US equivalent $8.9 billion (5.8 billion pounds) to part-fund a substantial strengthening of its capital reserves.
Indeed, one of the main post-GFC requirements of the Bank of England's PRA (Prudential Regulation Authority) is a 3% leverage ratio target by June 2014. The PRA has recently estimated Barclay's leverage ratio at 2.2%, even lower than the 2.5% internal estimate.
Barclays plans to offer one new share for every four to its existing shareholders at the discount price of 185 pence (Barclays shares opened down 4.6% to 295 pence) and in so doing has deferred it's target (aka prediction) for a positive return on equity (ROE) to 2016!
Source: Reuters London
Indeed, one of the main post-GFC requirements of the Bank of England's PRA (Prudential Regulation Authority) is a 3% leverage ratio target by June 2014. The PRA has recently estimated Barclay's leverage ratio at 2.2%, even lower than the 2.5% internal estimate.
Barclays plans to offer one new share for every four to its existing shareholders at the discount price of 185 pence (Barclays shares opened down 4.6% to 295 pence) and in so doing has deferred it's target (aka prediction) for a positive return on equity (ROE) to 2016!
Source: Reuters London
Comments
Post a Comment