Tuesday, June 17, 2008

Barclays in denial

There is a lovely article in the Daily Telegraph about Barclays being in denial about the size of the losses that it needs to take.

One thing that caught my eye was the following:

It has even been suggested that Barclays chose not to offload its Alliance Boots debt, when others in the banking syndicate took a 10 per cent valuation cut to get the assets off their books, because Varley and Diamond wanted to protect the minimal writedowns on leverage loans.

Well you might say that. I couldn't possibly comment.

Anybody looked lately at their consumer lender exposure in Japan? I couldn't possibly comment.

How about just the almost total absence of losing trading days in the investment bank. I couldn't possibly comment.

Anyone you know carried an 800 billion pound investment bank portfolio and not lost money on at least some days... I couldn't possibly comment.

How about the LBO exposures. Well apart from Boots I cannot possibly comment.

1 comment:

S said...

This blog looks great, hope to read more in the future.

General disclaimer

The content contained in this blog represents the opinions of Mr. Hempton. You should assume Mr. Hempton and his affiliates have positions in the securities discussed in this blog, and such beneficial ownership can create a conflict of interest regarding the objectivity of this blog. Statements in the blog are not guarantees of future performance and are subject to certain risks, uncertainties and other factors. Certain information in this blog concerning economic trends and performance is based on or derived from information provided by third-party sources. Mr. Hempton does not guarantee the accuracy of such information and has not independently verified the accuracy or completeness of such information or the assumptions on which such information is based. Such information may change after it is posted and Mr. Hempton is not obligated to, and may not, update it. The commentary in this blog in no way constitutes a solicitation of business, an offer of a security or a solicitation to purchase a security, or investment advice. In fact, it should not be relied upon in making investment decisions, ever. It is intended solely for the entertainment of the reader, and the author. In particular this blog is not directed for investment purposes at US Persons.