Barclays nationalised (but not by us)
So Barclays has managed to secure a capitalisation deal from a mix of members of Gulf Royal families and sovereign wealth funds. No doubt champagne corks are popping now that bonuses can keep on flowing. And it is good to know that at least one UK bank has convinced a significant investor that it is not a basket case.
But questions arise.
- How much has Barclays used other UK state funds to prop itself up? Does it now owe any obligations in return to keep providing credit to business ands change its behaviour?
- A contributory factor in the economic crisis was the failure of the owners of banks to check their behaviour. The message from Barclays today seems to be that they now have new owners of a third of the business who are hands-off and will keep out of running the business. And indeed the new owners would immediately lay themselves open to attack of representing the interests of a foreign government if they did. Is this not a problem?