Barclays reveals £1.3 billion loss

Barclays reveals £1.3 billion loss
Barclays revealed that it has written down £1.3 billion of assets because of the turmoil in the mortgage and credit markets, and has warned that the crisis is far from over. Barclays’ investment arm, Barclays Capital, made a £800 million write-down in October and a £500 million write-down in the third quarter of the year. The write-down was less than feared, and the bank said that Barclays Capital’s profits were higher than last year. “Today’s extensive disclosure demonstrates the strength and resilience of our performance during the year and in particular during the turbulent month of October,” said Barclays chief executive John Varley. But Bob Diamond, president of Barclays Capital, warned that the group has an ongoing exposure to the sub prime market. “The issues in sub prime are deep,” Mr Diamond said. “The leverage is severe and will take one or two years to work its way out.”