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Barclays forced to borrow again
Sep 1 2007 by Tony McDonough, Liverpool Daily Post
BANKING giant Barclays yesterday admitted it had been forced to borrow emergency funding from the Bank of England for the second time in a month.
The Bank of England disclosed on Thursday that it supplied £1.6bn on Wednesday from the standing facility, although it declined to name the bank or banks.
Barclays, which employs 800 people in Liverpool through its Barclaycard division, said it turned to the standing facility only after a glitch in the clearing system, believed to have left it £1.6bn short.
The group last night sought to allay fears it was facing credit problems amid the heightened concerns of a global credit meltdown sparked off by America’s sub-prime default woes.
It said in a statement: “Had there not been a technical breakdown, this situation would not have occurred.
“There are no liquidity issues in UK markets. Barclays itself is flush with liquidity.
“In these challenging times, the dramatisation of such situations is of no help to markets, their members of their customers.”
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