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Subprime Risks Won't Affect Any Banks' Profits For 2007, Barclays Included

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BarNLoungeclays announced today that the British bank posted a 14% increase in first-half net income, and said definitively that subprime mortgage defaults across the pond won't hurt the investment bank this year. The chippies were able to protect their bottom line because as a group they are "very risk aware" and know that if you click your heels three times, subprime won't affect profits (at least in 2007). 1st _ ½_P rose to 2.63 billion pounds ($5.35 billion, 40.1 pence/share), up from 2.3 billion pounds (35.1 pence/share) last year.
BarCap, conveniently located above Beer Bar, which Barclettes have not yet vouched for, will see a profit increase of at least 15% a year through 2008, and has limited risks in subprime mortgages, Barclays President Robert Diamond said. (Why, what have you heard?)
Barclays Says Subprime Risks Won't Reduce 2007 Profit [Bloomberg]