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Barclays in Treasury debt talks Barclays in Treasury debt talks
(10 minutes later)
Barclays has said it is in talks with the Treasury over its "potential" participation in the government's Asset Protection Scheme.Barclays has said it is in talks with the Treasury over its "potential" participation in the government's Asset Protection Scheme.
The bank said any decision on whether it would participate, "and to what extent", would be based on "the economic merits to shareholders".The bank said any decision on whether it would participate, "and to what extent", would be based on "the economic merits to shareholders".
The Asset Protection Scheme uses government money to insure banks' riskiest assets against further losses.The Asset Protection Scheme uses government money to insure banks' riskiest assets against further losses.
Lloyds Banking Group and RBS are already signed up to the scheme.Lloyds Banking Group and RBS are already signed up to the scheme.
In exchange for gaining the insurance, they pay the government a fee.In exchange for gaining the insurance, they pay the government a fee.
The government currently insures £325bn of toxic assets at RBS, and £260bn at Lloyds.The government currently insures £325bn of toxic assets at RBS, and £260bn at Lloyds.
Other banks have until 31 March to join.
Chancellor Alistair Darling hopes the Asset Protection Scheme will help restore confidence in the banking sector.Chancellor Alistair Darling hopes the Asset Protection Scheme will help restore confidence in the banking sector.
Sale talks
Barclays also confirmed on Monday that it had held talks over the potential sale of its iShares fund management business, but that no decision had been made.
ASSET PROTECTION SCHEME Taxpayers underwrite banks' bad debtsEssentially an insurance schemeBanks pay a fee to take partBanks are liable for initial losses, similar to paying the excess on an insurance claim
"Barclays...confirms that it has held discussions with a number of potentially interested parties as part of its practice of regularly reviewing the group's portfolio of businesses," it said.
Reports have suggested any sale could raise up to £5bn.
Unlike Lloyds and the RBS, Barclays has stayed profitable amid the collapse of the financial markets.
The bank reported profits before tax of £6.08bn for the full year of 2008.
Last October, Barclays announced a proposal to raise up to £7.3bn to strengthen its balance sheet, mainly from the state investment funds and the royal families of Qatar and Abu Dhabi.