- Tokyo Shares Edge Higher in Holiday-Thinned Trade
- 'Mall Cop' Stays on Top at Box Office
- Holiday Market Closures This Week
- With Rates Near Zero, What Will Fed Do Next?
- Freddie Mac to Seek Billions More From Treasury
- Pros Say: Oil, Gold, Yen Will Rule Future
- Signs Of Political Harmony Over Stimulus
- Stock Market's Next Bounce May Be Lower, Not Higher
- Stimulus Package: The Road Map Through Congress
- Lightning Round: Disney, Target, Research in Motion and More
- Lightning Round OT: Buffalo Wild Wings, Kinder Morgan and More
- Making M&A Money in Big Pharma
- Game Plan: Four Hopeful Signs for Market
- Your First Move For Monday January 26th
- Web Extra: Fast & Furious Trades For Monday
- The Fast Money Misfires – Friday January 23rd
- The Latest Picks That Paid – Friday January 23rd
- Take Your Position: Energy Earnings
Text Size 
Shares in Barclays slumped by a quarter late on Friday and other UK bank stocks also tumbled as worries about capital and writedowns resurfaced and the return of short-selling also hurt, dealers said.
Dealers said there was no single reason for the fall, but talk of more writedowns following big losses by Bank of America and Citigroup added to worries banks may need to raise more capital.
Short selling also hurt the stocks late in the day after a ban on the short-selling of financial stocks expired on Friday, several dealers said.
Barclays shares closed down 25 percent at 98 pence, its lowest level since 1993.
Royal Bank of Scotland fell 13 percent and Lloyds TSB lost 4.9 percent. HSBC was down 2.2 percent.
 |
Sang Tan / AP |
Sterling pared gains against the dollar as shares in Barclays tumbled, with the pound falling to $1.4780 from around $1.4860.
It remained about 0.8 percent firmer against the dollar compared with late Thursday.
The euro also gained against the British currency, rising to 89.65 pence from around 89.34 pence.
Several traders contacted by Reuters could not identify a specific reason for the late slide by Barclays or any of the stocks, but cited several rumors including worries about the impact of a UK rescue plan being discussed, executive departures, writedowns and capital.
"The shorting ban has been lifted and I guess the short guys have been sharpening up their tools and looking to see who they'll have a pop at next," said Numis Securities analyst James Hamilton.
Barclays declined to comment. Its shares have crashed 45 percent this week.
Uncertainty about the format of a new government plan being worked on to boost bank lending added to a jittery mood.
It could include fresh capital injections into banks or more government guarantees on toxic assets, the Times newspaper said.
A plan could come as early as next week, a Treasury source told Reuters, and state-guarantees to get credit moving again could feature high on the agenda.
Print
Email
Data is a real-time snapshot *Data is delayed at least 15 minutes