Saturday, November 01, 2008

Not exactly sure what the problem is here

So, a financial institution decides not to lock on to the governmental teet and expose taxpayers to even more risk, and they are the bad guy?

(Barclay's), which last month turned down the Government bailout offered to the sector, announced yesterday that it will raise £7.3bn from investors in Qatar and Abu Dhabi. Existing shareholders in the bank still need to approve the proposal on 24 November – and that may not go through without protest judging by yesterday's fall in the bank's share price. The stock fell by as much as a fifth before closing 13 per cent lower.

Some politicians also waded into the bank's business, with the Liberal Democrat Treasury spokesman Vince Cable branding the deal a "scandal of mammoth proportions".
The shareholders can choose whether to maintain their holdings or not, that is how it works. But how is Barclay's the bad guy in this viginette?

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