Barclays Capital bailed out a highly-leveraged investment fund, hit by recent tightness in the credit market, with a $1.5-billion (738-million-pound) lifeline, London newspaper the Times reported Wednesday.
A consortium led by the Royal Bank of Scotland which is locked in a battle with Barclays to take over ABN Amro launched a website to explain to the Dutch bank's employees how the proposed merger would affect them.
British bank Barclays is trading up over 3% after the head of its Barclays Capital investment banking arm told investors that profits for the year-to-date are "well ahead" of 2006, with the unit positioned for future growth despite market jitters.
Stocks closed broadly lower as already jittery investors expressed disappointment that the latest Fed minutes showed policymakers were reluctant to cut interest rates. "The comments from the Fed not indicating that a rate cut was imminent and further deterioration in the financial sector -- all of this combined and we're down substantially here," said Brian Schaeffer, an NYSE floor specialist at Van der Moolen.
Barclays Capital, the investment banking arm of U.K. bank Barclays, said on Friday it will provide financing to a structured investment vehicle (SIV) it helped set up last year.
British bank Barclays denied a report on Tuesday that it has several hundred million dollars of exposure to failed debt vehicles structured by its investment banking arm.
Fear of financial companies is again gripping world stock markets. Selling in financial shares-- banks and brokers--was a theme in the U.S. market yesterday but continued around the globe as investors worry that credit problems would show up on the books of major financial institutions. Several headlines helped stir the fear. European markets are weaker this morning, and Asian stocks closed mostly lower.
The head of a key European structured finance division at Barclays Capital has quit this week, sources familiar with the matter said, as market turmoil battered the investment structures that his team helped arrange.
European Union regulators on Thursday set a Sept. 19 deadline to approve bids from a consortium led by Royal Bank of Scotland for Dutch bank ABN Amro Holding.
A consortium led by Royal Bank of Scotland said Wednesday that it will not lower its 70.6 billioneuros ($96.5 billion) bid for ABN Amro Holding, even though the Dutch bank's first-half dividend breached a level that RBS had said could prompt a reduction of the offer.
Royal Bank of Scotland shareholders overwhelmingly approved the proposed 71 billion euro ($97.24 billion) takeover of ABN Amro on Friday, the third and final leg of backing from investors in the RBS-led consortium.
Belgian-Dutch financial services group Fortis on Monday cleared the way for its plan to buy parts of rival ABN Amro, as its shareholders in Belgium and the Netherlands gave their approval.
Barclays formally launched its 65 billion euro (US$89 billion) bid for ABN AMRO on Monday as it attempts to beat a Royal Bank of Scotland-led consortium in the biggest ever bank takeover.
Royal Bank of Scotland, locked in a bid battle for ABN Amro, marginally beat expectations with an 11% rise in first-half profit and said it had not been substantially hit by turbulence in capital markets.
In an interview with CNBC, Robert Diamond, Barclays president, said he is "absolutely delighted" with the bank's first-half success -- but spoke cautiously about the subprime meltdown.
Things are a bit calmer today: volatility much lower, volume still heavy, but not as heavy as last 6 or 7 days. Three stocks advancing for every two declining.
A takeover of Dutch bank ABN Amro by Britain's Barclays would boost pay of ABN board members, a filing at the U.S. Securities and Exchange Commission showed.
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Futures are perking up this morning and are setting stocks up for a firmer opening. Traders are turning their attention to earnings and some percolating merger news, and there's a calm on Wall Street after Friday's late day, mad dash down-hill ride for stocks.
Dutch bank ABN Amro withdrew its recommendation of a takeover by Barclays, leaving it neutral between the British bank's offer and a higher bid from Royal Bank of Scotland's consortium.