Barclays investor banks £2.25 billion profit
One of the mega rich investors from the Middle East who effectively bailed out Barclays bank in 2008 has sold his remaining stake in the operation via a complex hedging arrangement with Nomura bank. Sheikh Mansour bin Zayed al-Nahyan has in the process increased his cumulative profit on his original stake to £2.25 billion.
Those who watch the UK financial sector will be aware that in the depths of the recession, and the money market problems, a number of UK banks were struggling to remain liquid and effectively remain in business. While the likes of Lloyds bank and Royal Bank of Scotland eventually depended upon cash injections from the UK government, via taxpayer funding, Barclays bank decided to look to the Middle East and sold a significant number of shares to new investors. This effectively allowed Barclays bank to remain independent of the UK government by fully refinancing the operation and giving a significant buffer between required funds and available funds.
While a £2.25 billion profit on his original investment may seem extremely large, we must also appreciate that the Sheikh took a rather large gamble at a time when the UK banking sector was out of favour and in many ways out of control. Where would Barclays bank have been today without this investment?
Share this..
Related stories
Prudential confirms worst kept secret in town!
The Prudential has today officially confirmed that the acquisition of AIG's Asian operations is dead and buried and the deal has been terminated. An announcement this morning confirmed that Prudential will pay AIG £153 million as part of a break fee agreement with costs for the abortive bid set to total in the region of £450 million. This has been a complete disaster for Prudential and many anal...
Read MoreFSA investigation rules that rumours are ok
After perhaps one of the most irrelevant investigations that the FSA has ever done the association today announced that spreading rumours is okay as long as those on the receiving end are aware that it is unsubstantiated gossip. However, the FSA is suggesting that in times of market turmoil silence could be called golden in order to retain market confidence and reduce the spread of inaccurate rumo...
Read MoreStocks slide as US bond yields rise
Shares across the world have taken a tumble after US government bond yields hit their highest level in five years yesterday, prompting fears of higher interest rates.
London's FTSE 100 index was down 30 points in early trading after New York's Dow Jones took a 130-point fall overnight.
In Japan the Nikkei fell 28 points, while Germany's Dax bourse opened with a 72-point drop.
Read More
Will Yahoo follow Google out of China?
Over the last few hours it has been revealed that not only was Google (China) the victim of a sustained cyber attack, allegedly from Chinese state employees, but Yahoo (China) was also a target of the attack. Google is currently considering its position in the country with the potential that it could abandon its Chinese operation because of strict censorship by the Chinese authorities. But will Ya...
Read MoreAntiques offer an attractive investment
Antiques may offer a good opportunity for many investors in the face of financial instability.An increasing number of buyers are looking for secure ways to invest their money, as alternatives to challenging markets and low interest rates, and antiques and fine art are coming to the forefronts on many people's minds as such a place to invest.Tracey Hodges from the Thames Valley Antique Dealers Asso...
Read More