According to an article published yesterday in the Wall Street Journal,'''British bank Barclays PLC unveiled plans Tuesday to increase its capital levels by nearly $20 billion"'.
"Even as Barclays addressed one of regulators' main concerns about the bank.
A British regulatory agency is planning an enforcement action against the bank over a 2008 fundraising deal with Qatari investors, people familiar with the probe said.
Barclays's capital-raising exercise was larger than investors expected. It followed intense pressure from British regulators, who are demanding that U.K. banks have enough capital to avoid taxpayer bailouts if they encounter financial problems.
A British regulatory agency is planning an enforcement action against the bank over a 2008 fundraising deal with Qatari investors, people familiar with the probe said.
Barclays's capital-raising exercise was larger than investors expected. It followed intense pressure from British regulators, who are demanding that U.K. banks have enough capital to avoid taxpayer bailouts if they encounter financial problems.
Barclays said it will fill a £12.8 billion ($19.64 billion) capital hole identified by regulators by selling £5.8 billion of new shares and £2 billion of convertible bonds as well as by shrinking its balance sheet.
The move by Barclays is the latest in a sudden of efforts by European lenders to convince regulators and investors that they have fortified themselves against future crises. Deutsche Bank AG, for example, said Tuesday that it plans to get rid of about €250 billion ($331.58 billion) of assets, or 16% of its total, to improve its capital ratios".
Source WSJ
