Barclays in big capital raise

Barclays Building Sign

Barclays will issue £5.8bn in new shares as part of a move to plug a capital shortfall created by new regulatory demands.

BBC News reports that the bank will also issue £2bn of bonds that are turned into shares or wiped out if the bank gets into trouble.

Barclays said adjusted second quarter pre-tax profit fell 17% to £3.6bn.

The share sale will be done as a rights issue, giving existing investors the opportunity to buy new shares so their stakes will not be diluted.

Barclays chief executive Antony Jenkins said the plans enabled the bank to maintain its planned level of lending growth.

'I am certain the decisive and prompt action we are taking will leave Barclays stronger', he added.

Barclays' move comes after the banking regulator - the Prudential Regulation Authority (PRA) - issued tough new capital requirements aimed at ensuring banks are protected from the risk of investment losses, even in the event of a fresh financial crisis.

Hit the link below to access the complete BBC article:

Barclays to issue £5.8bn new shares to plug shortfall

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