Barclays plans £5.8bn cash call

BarclaysBanking giant Barclays has revealed plans for a mammoth £5.8 billion investor cash call to meet City regulator demands to shore up its finances.

The group is to tap investors by issuing new shares at a discounted price as part of a fundraising to boost its balance sheet by another £12.8 billion - on top of billions of pounds already being raised by the bank to build up a cushion against future financial shocks.
Details of the move came as half-year results also revealed an extra £2 billion charge to cover compensation for mis-selling, including £1.35 billion for payment protection insurance.

Excluding mis-selling provisions, underlying pre-tax profits fell 17% to £3.6 billion over the first six months of 2013 as the bank counted the cost of a group-wide restructure launched in the wake of its Libor rate-rigging settlement last year.
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