I am relieved that Barclays does not want to join the list of banks that ask the taxpayer to assume some or all of their risks. The taxpayer cannot afford all these banks.
The question to ask, is why did the Regulator chose this time to demand more capital from the banks? Why didn’t they ask for it last year when all the banks could have raised it easily in the Stock market from private shareholders? Asking for it now means worse terms to raise it, and of course the initial stories were bad for the share prices, making it more difficult and dearer to get the money from the market.
Mr nationalisation Cable is in a fury about Barclays, so it’s not all bad news!