Barclays could have lost as much as $400 million in the sub-prime lending market through funds linked to German bank Sachsen it emerged yesterday, City AM reports.
The company’s share price dropped three per cent prompting city analysts to insist on a statement from Bob Diamond, Barclays Capital chief executive.
Barclays rejected claims that they could have amassed $400 million of losses through investing in SIV-lite funding vehicles made for Sachsen.
“Barclays provided no funding at any time to the Sachsen SIV-lite,” says a Barclays spokesman.
But due to the fallen share price, analysts claim that a formal clarification from the chief executive is needed.