Barclays Says It’s Well Capitalized

As the world-wide liquidity crisis deepened, rumors floated around that Barclays, the creator of the iShares ETFs and iPath ETNs was planning on asking the British government for capital.  On Oct. 7, Barclays CEO John Varney denied it.

Today, Barclays released an Oct. 8 statement from the British government about discussions between the bank and the U.K. Financial Services Authority (FSA) and British Treasury.

Barclays says it is well capitalized, profitable and has access to the liquidity required to support its business. The bank said given the strength of its well-diversified business and the existing capital base, the regulators expect that Barclays can raise additional capital from investors and not need help from the government funding offered to other U.K. Banks.

Barclays seems pretty stable amidst the turmoil at other banks. So, investors in iPath ETNs should be safe. However, other financial institutions did say things were just hunky dory just before they went belly up, so let’s see how the market takes this.

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