Barclays biggest victim as banks sell-off rumbles on

Mickey Clark, Evening Standard,
21,Jan,2008

Another big sell- off of bank shares in New York and then in Asia set the agenda for further day of carnage among the UK's biggest lenders on the London stock market.
Shareholders of the major banks were left to count the cost of the latest sell-off. Those banks already contained with the Government's “golden circle” struggled to make headway. Royal Bank of Scotland edged 0.6p higher to 10.9p on turnover of 225 million but the enlarged Lloyds Banking Group shed a further 3p to a record low of 41.8p as a total of eight million shares changed hands. Investors remain worried by the growing prospect of full nationalisation for both companies.
Citigroup continues to rate RBS a buy but has cut its target from 100p to 35p following the sharp fall in the price. It says nationalisation remains a possibility, and RBS will continue to be a volatile investment. The market has lost confidence that the bank has sufficient capital.
Barclays was the biggest casualty on the day, losing 12.4p to 60.5p on turnover of almost 200 million shares, despite its assertion that it remains in rude financial health. The City is less convinced and is worried about further big write-offs and the possibility of it turning to the Government for extra funding — making it another bank on the fast track to nationalisation.