"China Development Bank and Temasek, the Singaporean sovereign wealth fund, have both lost money since they invested in Barclays last summer."
"Barclays appears to have shied away from a rights issue, which would require Barclays to allow other investment banks, acting as underwriters, to scrutinise its balance sheet."
"The bank is being less conservative than some of its rivals in marking down assets related to the US subprime mortgage meltdown and has not taken market prices into account when valuing its £7bn portfolio of leveraged loans."
These fellows could have easily given lessons to Wall Street in laying off risk to the broader public and governments. Come to think of it, perhaps they have.
Barclays seeks to raise £4bn
By Peter Thal Larsen in London
Published: June 15 2008 18:55
The Financial Times
Barclays is seeking to raise as much as £4bn ($8bn) from outside investors as it seeks to shore up its balance sheet without having to launch a rights issue that could lead to aggressive writedowns. (And having to expose its books to the scrutiny of underwriters - Jesse)
The UK bank is working on a plan to offer stakes to large investors, including several sovereign wealth funds, in which shares would be purchased at a premium to current prices. Existing shareholders would be given the opportunity to participate in the offering on similar terms although terms that dilute their holdings by 5 per cent or more will require their approval.
The move comes as battered financial services firms are set to roll out their second-quarter earnings, with further asset writedowns likely.
Barclays has been under pressure from regulators and investors to boost capital reserves. The bank’s core Tier One equity ratio – a key measure of balance sheet strength – is among the lowest in Europe at about 5 per cent. 
Analysts believe Barclays, which has written off £1.7bn so far this year on complex debt securities, is being less conservative than some of its rivals in marking down assets related to the US subprime mortgage meltdown. The bank has also not taken market prices into account when valuing its £7bn portfolio of leveraged loans.
Concerns about Barclays’ balance sheet, and worries that it may dilute existing shareholders by issuing new equity, have recently driven the bank’s shares to their lowest level for a decade.
John Varley, Barclays’ chief executive, has said he is keeping his options open in raising new capital. But the bank appears to have shied away from a rights issue, which would require Barclays to allow other investment banks, acting as underwriters, to scrutinise its balance sheet. Big disposals are seen as unlikely.
The willingness of sovereign wealth funds to take stakes in banks, especially at a premium to depressed share prices, remains unclear. Many have already been burnt by earlier investments. However, Lehman Brothers’ $6bn equity issue, completed last week, shows investors are still willing to buy bank shares.
China Development Bank and Temasek, the Singaporean sovereign wealth fund, have both lost money since they invested in Barclays last summer as part of the bank’s failed bid to buy ABN Amro, the Dutch lender.
It is unclear how much capital Barclays needs. But if the bank seeks to raise too much, shareholders are likely to argue it should launch a rights issue.
