Government Assistance To Banks A Mixed Bag

The decision by Barclays to raise capital privately, and the decision Lloyds, Royal Bank of Scotland and HBOS to make use of a government bailout has not brought the clear cut advantages and disadvantages earlier predicted, The Financial Times reports.

By None

The decision by Barclays to raise capital privately, and the decision Lloyds, Royal Bank of Scotland and HBOS to make use of a government bailout has not brought the clear-cut advantages and disadvantages earlier predicted, The Financial Times reports.

Barclays raised capital mostly from investors in Abu Dhabi and Qatar, a move it thought would free it from government interference but prompted a backlash from investors. Lloyds, RBS and HBOS turned to the government’s incentives, but hasn’t been subjected to as much regulator scrutiny as was feared.

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