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Barclays share plunge as it is forced to seek £5.8 billion
Shares in Barclays fell sharply today as the bank said it would raise £5.8 billion from
shareholders to shore up its finances. The bank revealed that its finances were in a worse
state than thought and that it would have been forced to make deep cuts to its business
without a massive capital strengthening. Its shares fell 5.4 per cent, or 16.5p, to 292.5p in
morning trading in London. Barclays is offering one new share for every four held at a deeply
discounted 185p each - a 40 per cent discount to last night's 309p closing price. It reported
today that its crucial leverage ratio — a measure of its capital as a proportion of its total assets
— was just 2.2 per cent. This is far lower than the 2.5 per cent previously thought and sharply
below the 3 per cent minimum required by June 2014...
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