Shares in Barclays are on the increase again after chief executive Bob Diamond restored faith in banks’ financial health.
“The world’s credit market bubble has burst so we have very difficult trading conditions,” says Diamond.
Bad headlines have dominated Barclays in recent weeks, Ed Cahill, a junior banker involved in setting up SIV-lites departed suddenly, and fears of a liquidity crisis have loomed.
“Barclays Capital is very good at managing its risks. We are weathering the storm. I’ve already said that our July results were better this year than last year. We’ll manage our way through August as well.”
The news that Barclays borrowed almost $3.2 billion from the Bank of England’s emergency lending fund have led to fears that a liquidity crisis was on the horizon.