Barclays Bank shares increased today as they announced that they would not be seeking capital from either private investors or the UK government and that they could afford to absorb a writedown of £8bn of bad debt and still show on target pre tax profits of £5.3bn.
The news from Barclays, coupled with the further boost that it has made a good start to 2009, sent shares soaring on the stock exchange, although still trading at one tenth of the February 2007 level.
LLoyds Banking Group and RBS also showed significant gains in the market on the back of the Barclays news, which has been referred to as a ‘very powerful statement’ by one financial analyst.
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