Barclays faces fresh credit worries

2 November 2007

Barclays has seen its share price dip amid growing rumours that it is set to face significant funding difficulties.

The bank saw its share price fall by seven per cent at the start of play on Friday, because rumours persist that it is having credit difficulties.

So far, the Bank of England has refused to comment on the market speculation, while Barclays has also made no remarks relating to the concerns, or its dip in share price.

There is particular uncertainty over the revenue outlook of the Barclays Capital division, a note from Goldman Sachs has stated, according to Reuters.

However, this will come as a surprise to some, after Barclays Capital announced just three weeks ago that profit in September was considerably ahead of the previous two months, when the impact of the credit crunch had had a noticeable impact on business.

The global credit crunch has hit the UK's financial sector in recent months and there remains concern among investors over how the current economic downturn will play out.

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