Barclays considering fund sale

Barclays Bank is hoping to raise £5 billion from the sale of part of its fund management operation in a desperate bid to avoid having to sign up for the e government’s toxic-loan insurance scheme.

Roger Jenkins who is Barclays’ top banker in the Middle East is overseeing the potential sale as the bank is attempting to make sure that they achieve market price for the business.

John Varley, the bank’s chief executive will announce over the next 10 working days if Barclays is to sign up to the government scheme although an independent solution is by far the preferred option.

Barcalys has had much less exposure to either the US or UK mortgage crisis and on closer examination the value of mortgages Lloyds has entered into the government -insurance scheme is nearly equivalent to whole of Barclays UK mortgages.

If the bank where to sign up they must do so by March 21st although it would be a U-turn for the bank who has thus far avoided the need for taxpayer money unlike its rivals Lloyds and the Royal Bank of Scotland who have been unable to remain profitable following the collapse of the worlds financial markets.

Barclays is still able to raise capital by selling assets as the bank profits before tax of £6.08bn for 2008.

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