Barclays taps bank of England for £1.6bn

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Reuters here and interesting thread on housepricecrash, here

They had to do this last week as well. I used to design processes for money markets, and know that any process that wouldn't have allowed for a short position to be closed out within this time-frame would never have got past me, let alone my risk managers. And if Barclays can't borrow at that time in the afternoon there is something wrong with it's credit lines with other institutions - 1.6bn is actually not a lot of money to be trying to find. There may not actually be liquidity problems at Barclays, but if they can't get that sort of money interbank at 3pm there is a perception amongst others that there may be an issue

They had to do this last week as well. I used to design processes for money markets, and know that any technical process that wouldn't have allowed for a short position to be closed out within this time-frame would never have got past me, let alone my risk managers. So if Barclays can't borrow there is something wrong with it's credit lines with other institutions - 1.6bn is actually not a lot of money to be trying to find. There may not actually be liquidity problems at Barclays, but if they can't get that sort of money interbank at 3pm there is a perception amongst others that there may be an issue

When did the housepricecrash website start? I mean, at some point they may be right. Will they be all I told you so (after 5 years?)

Don't worry Cali - retail banking is protected and ring-fenced - your money will be safe. The issue is with Barclays Capital - the trading arm that risks the banks (but not customers) own money. Worst case - barclays traders don't get bonuses, few more hedge funds go bust, markets around the world correct even more.
I'm still v. scared about the impact of the US mortgage crisis - I've known fund managers who have bought collateralized debt and not realised so until I've goen to them with pricing queries . It is possible that end of month valuations will uncover yet more problems. And whilst teh economic impact is actualy small, it will hugely afect confidence, which is sometimes all that drives the markets

THere are some anecdotes on that housepricecrash site about people taking their money out of Barclays retail bank as a result though. Because the public doesn't differentiate between BarCap and Barclays bank

Tinker, it's been around a while that site, I guess one of these days they'll be right ish!

I'm with Barclays. I keep intending to take my money (ha!) elsewhere because they are BarCrap

i don't understand any of this...can someone explain in simple terms what that means to me, a barclays customer (in the UK if that makes a diff)

they are affectionatly known in our house as "Wanklays"

As Prufrock says, it doesn't mean anythng to you as a customer of Barclays retail bank, this is Barclays capital arm. So don't worry Mof M

thats ok then!

have to say i am not a customer as such, i am paying back my (LARGE) overdraft then hugh tailing it out of their anyway!!