Barclays (BCS) said it would take a write-down of about $2 billion in impaired assets, some of them related to mortgages. The big Brit bank may have to raise $1 billion to keep its balance sheet looking good.
According to Reuters "Finance Director Chris Lucas said Barclays was keeping its options open in regard to boosting capital."
It does not matter so much the size of the writedown. What is important is that money center banks continue to write-off billion of dollars of assets as the year 2008 gets longer in the tooth. No really large bank in the US or Europe has given any indication that it is positive that the revaluing of assets is over.
Rumors and opinions that the credit crunch is over abound. Some of the bank stocks have recovered a bit of their huge losses. But, the mortgage fiasco cannot really end while default rates continue to move up, and other consumer credits held by banks, either directly or in derivative form, have not really hit the fan yet. Based on the economy, they surely will.
The temptation to think that the world of banking is getting better is wishful thinking. Barclays has just made that very clear.
Douglas A. McIntyre
Want to Retire Early? Start Here (Sponsor)
Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?
Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Have questions about retirement or personal finance? Email us at [email protected]!
By emailing your questions to 24/7 Wall St., you agree to have them published anonymously on a673b.bigscoots-temp.com.
By submitting your story, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
