Barclays in Treasury debt talks

[Jan Klimkowski]

In its statement today, Barclays confirmed that it is talking to the Treasury and the Financial Services Authority about its potential participation in the asset protection scheme (APS), but said: "Barclays's decision whether, and to what extent, to participate in the scheme will be based on the economic merits to shareholders of any such participation."


Instead of turning to the government for aid, Barclays has raised billions from investors in Qatar and Abu Dhabi, who together now own almost a third of the bank.

http://www.guardian.co.uk/business/2009/...-fund-sale

The sheikhs have been conned. To mangle my metaphors, they've been sold a dead donkey by the snake oil salesmen.

I would imagine the sheikhs are not keen on seeing their shareholding diluted, and potentially subsumed, by UK government control.

However, in reality, like all the big banks, the supposed "assets" of Barclays are probably worth pennies on the pound if ever marked to market.

If the sheikhs are smart, they'll be screaming for a bailout by the British taxpayer. Unless they're being advised that the pound sterling is toast, and British government guarantees will soon be worthless.