From Jill Treanor at the Guardian,
The size of the cash call on investors – in the form of a rights issue, which will be launched in September – is bigger than expected and follows a request by the Bank of England that it meet a new measure of financial health, known as the leverage ratio. Barclays shares were volatile in early trading, falling around 6% to 290p after the larger-than-expected rights issue was announced.
"After careful consideration of the options, the board and I have determined that Barclays should respond quickly and decisively to meet this new target. We have developed a bold and balanced plan to do so," said Jenkins, who was promoted to chief executive only 11 months in the wake of the Libor-rigging crisis.
The size of the capital gap identified by the Bank of England of £12.8bn is almost double the amount the City had been expecting ....
“If you’re doing a rights issue, then you have to clear the decks and present investors with a clear balance sheet,” said Mike Trippitt, a London-based analyst at Numis Securities Ltd. who downgraded Barclays to sell this month in anticipation of a rights offering.
“You can’t do a rights issue and then follow it up with additional provisioning in the next quarter. My only concern is that they haven’t done enough.”