Barclays Bank, 2008
Questions for this case:
1. How did Barclays do during the 2008 crisis? Is the bank under financial distress? What major problems was it facing?
2. Why does Barclays need to raise capital in late October 2008? How much? What could be the pros and cons of raising more equity in 2008? Is this a Barclays Bank specific problem? Are there other major issues at stake?
3. Was the capital increase that took place in June 2008 a good idea? Who were the winners and losers on that transaction?
4. Why the options on the table are not just pure equity?
5. Describe the possible terms of the Government's offer to recapitalize the bank. What are the advantages and disadvantages of accepting such offer?
6. Describe the possible terms of the "Middle Eastern" offer to recapitalize the bank. What are the advantages and disadvantages of accepting such offer?
8. As a Board Member, what recommendation would you make for the coming AGM? Express your main arguments to convince shareholders (a note: in AGMs, the Board only presents one option, the best one in their views, as the Board is bound by fiduciary duty to defend the interests of all shareholders).
9. As a shareholder, how would you vote and why in the coming AGM?