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| Barclays bank in trouble over sub-prime loans? | |
| 2007-09-02 | |
It has been another torrid week for Barclays, with revelations that it used £1.6bn emergency funding from the Bank of England and speculation that it has made big losses on the fallout from the sub-prime crisis in the US....
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| Posted by:lotp |
| #5 It's not a credit crunch it's a solvency crisis. No one is lending to anyone else because they know that they are holding bags of sh1te with a negative yield. There was a PR coverup of the 1.6B GBP BoE loan. Barclay's claimed it was related to a technical problem however the technical problem (with CREST) happened after the loan was taken out. I'd withdraw any money over 2K GBP(your 100% insured level) from Barclay's. There's lots of anecdotal that a lot of other people are doing so too, i.e. there personal banking website is SLOOOOW. |
| Posted by: Bright Pebbles 2007-09-02 19:14 |
| #4 "There are question marks surrounding the development of the American economy. Something unbelievable happened. People who had neither income nor capital got credit with very attractive conditions. Now reality is striking back." And I'm pretty sure Congress is involved in there someplace.... |
| Posted by: Barbara Skolaut 2007-09-02 17:48 |
| #3 The problem is not just with the UK & its political leadership. All these banks lend to each other. Barclay's trouble stemmed from an unusual reluctance of other banks to lend them money. The US economy is running on money borrowed overseas & will suffer greatly if the furriners don't keep borrowing US $ at the usual pace. The president of the Swiss National Bank said, "We're certainly not at the end of the story. There are question marks surrounding the development of the American economy. Something unbelievable happened. People who had neither income nor capital got credit with very attractive conditions. Now reality is striking back." |
| Posted by: Anguper Hupomosing9418 2007-09-02 15:39 |
| #2 It cracks me up that near where I live, they are still building condos, even though any day now, the bottom could drop out of the market, and the developer would suddenly leave the State. |
| Posted by: Anonymoose 2007-09-02 13:42 |
| #1 The 1997 Asia crisis sent property prices down for 10 straight years in a number of countries, including Japan and Singapore. This could turn very nasty and other countries have property lending problems at least as bad as the USA, including Australia. |
| Posted by: phil_b 2007-09-02 01:17 |