Lehman’s new parent is doing just fine, thank you very much. The bank was able to raise money from Middle Eastern investors to meet U.K. capital benchmarks months ahead of schedule. The move prevents Barclays from needing government bailout funds. Man, if only Lehman Brothers was able to do that…
WSJ: Barclays PLC said Friday it is raising £7.3 billion ($12.02 billion) in capital from a number of Middle Eastern investors in a move that will enable the British bank to avoid taking government bailout funds.
The bank’s new capital will come from about £4.3 billion in reserve capital instruments and £3 billion in mandatory convertible securities. The main investors are based in Qatar and Abu Dhabi and include Qatar Holding and Sheikh Mansour Bin Zayed Al Nahyan.
Barclays needs to raise funds to meet new U.K. government capital benchmarks for its banks as part of the government’s £400 billion bailout plan laid out earlier this month. Barclays Chief Executive John Varley had until March to raise all the money, and the early move to secure funds is likely to refute scepticism that the bank might have trouble in choppy markets.
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