Barclays warned on toxic asset dumping
Barlcays' accounts could be scrutinised by Treasury if bank applies for government's asset insurance scheme
Barclays has been warned that its balance sheet would be subject to forensic
Treasury examination if it decided to dump toxic assets on the taxpayer, the
Financial Times reported, amid signs that the bank could face a
higher-than-expected bill for using the government’s asset insurance scheme.
Barclays executives are studying the terms of the Lloyds deal to insure
£260bn of assets as they decide whether to formally apply to join the scheme
before a March 31 deadline, the FT said.
News of the possible application for the government insurance scheme sent
Barclays shares in Barclays down more than 10% earlier this morning.