This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.

You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/business/7095809.stm

The article has changed 11 times. There is an RSS feed of changes available.

Version 0 Version 1
Barclays reveals sub-prime losses Barclays reveals sub-prime losses
(20 minutes later)
Barclays has confirmed that it did not escape the woes from investments in risky US home loans, taking a hit of £800m in October. Barclays has confirmed that it did not escape the woes from investments in risky US home loans, taking a hit of £800m ($1.64m) in October.
But the UK bank said that it had shrugged off the loss to book higher pre-tax profit for the 10 months to end of October than last year. Sub-prime losses at its Barclays Capital investment bank arm now total £1.3bn, taking into account a £500m write down in the third quarter.
It is hoped the announcement will calm fears over bad debts at Barclays, which were thought to be more severe. The write down was less than feared, and the bank said Barclays Capital profits were higher than last year.
Rumours have circulated that the bank was hiding big mortgage-backed losses.Rumours have circulated that the bank was hiding big mortgage-backed losses.
"Today's extensive disclosure demonstrates the strength and resilience of our performance during the year and in particular during the turbulent month of October," said Barclays chief executive John Varley.
However, the bank also said Barclays Capital still had exposure to investments in packages of debt, which includes exposure to US sub-prime mortgages.
Barclays shares have taken a beating in recent weeks rumours persisted that the bank could have a black hole of as much as £10bn as a result of huge exposure to sub-prime US mortgages, which have collapsed over the summer.