Barclays rescue plan approved
Barclays' bosses braved the wrath of shareholders today to explain why the bank needed to raise almost £6billion of capital from new investors.
The bank's chairman Marcus Agius told a general meeting of shareholders at Excel today failure to secure the promise of funds from the Middle East could have proved "terminal".
It succeeded in attracting £5.8billion of cash from investors in Abu Dhabi and Qatar in return for a 32 per cent share of the bank.
But the deal angered private shareholders who felt they should not have been excluded, while there were complaints it diluted their stake in the bank.
Despite their anger the rescue plan was approved by a majority at today's meeting, although 15 per cent of shareholders voted against it.
Mr Agius argued the foreign investment, part of a total of £7billion needed, was vital if Barclays was to continue as an independent bank.
He said: "The stock market was so nervous about investing in banks in October a dangerous leak that we were having trouble raising money could have been terminal."
The bank turned down the opportunity to take a chunk of the Government's £37billion rescue package last month, preferring to raise private capital to stave off the threat of a Lehman Brothers-style meltdown.
Barclays did offer £500million of high-yield securities to existing shareholders last week, all of which were snapped up.
And it revealed last week its four senior executives, including Mr Agius and chief executive John Varley, will be up for re-election at its AGM next April.
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