Categories: Credit Crunch / Crisis management / Trust and reputations

1 November 2008

One comment

Barclays puts up robust defence

The retail shareholders complaining about Barclays Bank’s deal with Middle East and other investors might well have a point. However it is not one that appeals to me.

From a PR point of view it is attractive to believe that Barclays was protecting long-term shareholder value by being creative and courageous. Arguing that the bank is not featherbedding at the state’s expense as many of its rivals are doing is a strong point to advocate. However, the deal is complex. Time will tell. For an account of how Barclays’ independent business strategy has more pros than cons (though the cons are significant), see today’s article by Christine Seib in The Times.

One response to “Barclays puts up robust defence”

  1. Alan Brighty says:

    Whether the British Government or the Middle East backs Barclays Bank will have little immediate impact on retail shareholders or other investors. They have seen all bankers act like ravenous swine and the British Government shamelessly misuse the Terrorism Act to freeze Iceland’s assets and virtually force that country into bankruptcy. While not denying that the crisis is cash, the greater one is confidence followed by trust. That’s where the banks should be making their major efforts. As for the Britsh Government, I think it’s shafted anyway.