Updated:
Original:

Barclays Has A Problem: Bank Cannot Stop Borrowing, Lending Money

Author:

Barclays announced today that it "rescued" a $1.6 billion debt fund run by Cairn Capital after it was unable to raise money in the credit markets, a situation that Barclays would undoubtedly take credit for, if only creating a discredited market were something to brag about (which, in some circles, it is, just not those in which the Barclettes move). Separately, the bank, blaming the proverbial "technical breakdown," borrowed a sizeable amount of money (£1.6bn ) from the Bank of England yesterday, for the second time in two weeks.
Barclays claims that "[the bank] itself is flush with liquidity." But does its appeal that everyone "quit your bitching and leave us alone or someone's going to get hurt" (actual statement: "In these challenging times the dramatisation of such situations is of no help to markets, their members or their customers") seem a bit defensive for an organization that doesn't have a care in the world? Some think the lady doth protest too much and are demanding answers. James Harding would care to know:

Why was it just Barclays that found itself scrambling for funds? Why could Barclays not find lenders in the commercial market? And why was it that, if the Crest settlement system was to blame, other banks did not also go running to the Bank of England?

It's getting kind of late in the day and we're about to close up shop for the weekend, otherwise we'd obviously provide groundbreaking answers (and more) to all those questions. For now, we leave you with one of our own, that might actually put this thing to bed-- substance abuse? (Don't act like it's not the logical conclusion.)
Barclays Rescues $1.6 Billion Cairn Capital Debt Fund [Bloomberg]
Barclays admits borrowing hundreds of millions at Bank's emergency rate [The Guardian]
Barclays and the interbank market [Financial Times]
Transparent lack of transparency [Times Online]

Related

Deutsche Bank Has A Dream

But it needs everyone's help.

Barclays' (Now Former) Head Of FX Strategy In Asia Has A Moment

Have you ever had construction going on nearby your home? Was it loud? Annoying? Did keep it keep you up in the middle of the night? Did you seriously consider opening your window and screaming "Hey! Shut the hell up down there!" or even confronting the people making all that racket face to face? Olivier Desbarres can relate. Or at least he can half relate. Because while most of you were probably talked out of making some sort of scene, either by your significant other or your own impulse control, on October 20th Desbarres decided to go in another direction, the one that involved introducing himself to the construction workers building a house near his own by screaming "I'm gonna go after you, I will haunt you, I'm gonna burn your fucking house down, I will find your fucking family," a task he noted would be fairly simple and straightforward ("I can find [them] very easily," he explained, "I'm a man with resources"), in case there were doubts (a fairly reasonable concern, as there are a lot of people in Singapore and how were these guys supposed to know he had an army of Barclays researchers at his disposal?). Still worried that the group wasn't taking his threats seriously on account of the casual look he was sporting that morning-- shorts and sandals-- Desbarres then picked up some sheet metal and launched it in their direction, presumably to demonstrate he meant business.* Although that would have been a good time to make his exit, at that point Desbarres noticed that one of the men had been recording him without his consent, leading to: “You’re filming me? You think that’s good? Put your fucking phone down because I’m going to wait for you to come out and take that phone and shove it up your fucking ass.” According to one local publication, this whole thing started because the construction crew began working at 8:45am one day in October instead of 9am, the time Desbarres preferred. In related news, according to a person familiar with Barclays' policies concerning construction site meltdowns, "We consider such behavior and language unacceptable. It does not meet the high standard of conduct that we expect of our employees." Desbarres, who is no longer with the bank, has not yet returned Dealbreaker's call for comment.** Foul-mouth foreigner threatens workers and warns he will hunt down their families [Stomp] Barlcays Far Too Candid Camera [Sunday Times via Ian Fraser] Barclays Capital Appoints Olivier Desbarres as Head of FX Strategy, Asia-Pacific Ex-Japan [BarCap] Related (re: Barclays employees losing their shit in public): Barclays Global Head of Investment Banking Writes Tear-Stained Letter To Son’s School, Demands Teacher’s Firing For Trash Talking Barclays, Making Son Cry *Insane ranting + shorts + sandals can leave room for interpretation re: is this guy serious or not; insane ranting + shorts + sandals + grabbing whatever shit from a construction site is within arm's reach and throwing at people is generally-- though not always!-- pretty clear. **Possibly because we called in the middle of the night local time and he is on his way to New York to throw a piece of sheetrock at us; you know how he gets when his sleep is interrupted.