16
Mar
Barclays considers asset protection scheme
Barclays has confirmed that it has been in talks with the Treasury
over its possible participation in the government's asset
protection scheme.
The lender has revealed the move while at the same time stating
that it is negotiating over the possible sale its fund management
arm, something that could enable it to avoid such a measure.
Barclays originally opted not to join the Royal Bank of Scotland
(RBS) and Lloyds TSB in accepting help from the government last
year.
A move to participate in the scheme, which would see the bank
covered against losses from potentially toxic assets, could see
obligations placed on it to lend more, something that may be good
news for those seeking mortgages.
Last week RBS announced it will increase its mortgage lending in
Scotland by £1.7 billion over the course of 2009 and 2010, in
addition to increasing its business lending.
