Barclays Bank Bashed by Bears

Online Stock Trading - Barclays Melts in the Afternoon Heat

It was pretty cold on Friday afternoon, but that didn't stop Barclay's shares melting away and its market capitalisation shrinking by more than £2.7 bn in just over an hour. Its shares plummeted by over 24%, for reasons that are still not clear. There were fears that it may have to go cap in hand to the Government for a bailout, and also fears that it was a target of short sellers, now that bank baiting is legal again. See Barclays Downed by a Flock of Bears.

Barclays was also damaged by concerns it may be a loser if the Government creates a so-called toxic bank, or septic bank, although Robert Peston (he who must be listened to) says this is now unlikely.

Barclays quickly rushed out a statement saying that its finances were in excellent shape and annual profits to be announced in February should be well north of £5.3 bn. So that's alright then and the shorters will get their come-uppance on Monday.

Problems at Bank of America and Citigroup caused people to speculate that more bailouts, and even nationalisations, may be to come worldwide to prevent further bank collapses. So after defeating communism back in 1989 rampant capitalism is now defeating itself, quite a feat!

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