Barclays to raise £3 bn ... and then some

As predicted here, Barclays are next in line for a rights issue.

The amount does seem on the low side, it's less than 10% of current market capitalisation of £31 billion, as opposed to my ball-park figure that banks will have to raise approximately 20% of their current market cap.

Remember also that Barclays' gross assets of £1,227 billion are roughly double those of HBOS (£667 billion - see page 11); so Barclays will only get away with this if the fraction of assets that they have to write off is less half that of HBOS, who are to raise £4 billion shortly.