Shares in Barclays soared today on reports the FSA had given the bank's balance sheet a clean bill of health, which will allow it avoid seeking funds from the Government, reports The Times .
The FSA has been stress-testing Barclays' balance sheet over the past week to ensure there are no major holes in its finances. The bank's stock rose by 10.85 per cent to 155.3p in early trading today. The all-clear means it will not have to return to investors for more capital immediately. It will also strengthen its hand in negotiations with the Treasury over costs for making use of the Government's asset protection scheme to insure its toxic debt. However, many analysts think that after the investments of two Middle Eastern backers convert to equity in June, the bank may consider maki...
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