Attachment
“Sun Worldwide” sources say that news of clever accounting by Barclays Bank to distance itself from over $12 billion of toxic assets is a timely reminder of just how opaque operational practices of the global banking players remain.
“Sun Worldwide” advised its clients to ignore rights issues by all the major banks and especially those in the UK suggesting that the Financial Services Authority’s decision not to publish the results of the stress tests conducted on Britain’s banking giants was a “surefire sign” that greater horrors lay behind the trick accounting procedures.
Under the terms of the deal. Barclays has sold $12.3bn of toxic assets to a Cayman Islands-based firm called Protium Finance. It has provided the firm with a $12.6bn loan to purchase the assets and also pays for their offices.
“Sun Worldwide” analysts believe that the bank will use the distance to claim its core tier one capital ratio remains intact because the assets will not have to be marked to market.
“Sun Worldwide” says, however, that the assets will almost certainly continue to lose value as the residential and commercial real estate that their values depend on are set to continue falling especially in the UK.
Photo:
http://www.prlog.org/
