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Barclays 'set to put £30bn into toxic asset plan'
12.03.09
Barclays will put about £30 billion of toxic assets into the government guarantee scheme - far less than its stricken peers, City analysts predicted today.
A poll of banking analysts by Bloomberg found the average prediction was that Barclays would seek to insure about 90% fewer assets than Royal Bank of Scotland and Lloyds Banking Group, who insured £325 billion and £260 billion respectively.
Unlike them, Barclays has rejected government funds, which analysts reckon could give them a stronger bargaining position in asset insurance talks. Previous estimates had been that the bank would seek £50 billion to £80 billion of cover.
The scheme is aimed at enabling banks to feel more confident about resuming lending again by taking out the liabilities on some of their riskiest assets. In return for a fee - like an insurance premium - the Government will guarantee the price of the assets.
"If the price is wrong Barclays will walk away," said Ian Gordon, an analyst at Exane BNP Paribas in London.
