COMPANIES Barclays is facing a tough decision – whether or not to join the UK government’s insurance scheme for bank assets. Unless the authorities are willing to make substantial changes to the scheme, it may not make sense.
The government has struck deals with Royal Bank of Scotland and Lloyds to cap future losses on assets worth almost £600bn. Now the focus has shifted to Barclays, which is widely seen as the last remaining British bank that might be in need of substantial support. Though the two sides have had no meaningful negotiations, the deadline for applications is at the end of the month.
