Journalists and numeracy

The prince’s ex sues Barclays: Glamorous financier who dated Andrew claims the bank illegally loaned Qatari investors £2.3m so they could BAIL it out at the height of financial crisis

Don’t think so, not really.

The prince’s ex sues Barclays: Glamorous financier who dated Andrew claims bank illegally loaned Qatari investors £2.3m so they could BAIL it out at height of financial crisis
High Court documents claim Barclays loaned £2.3b to Qatari businessmen

Nope.

2 thoughts on “Journalists and numeracy”

  1. Daily Fail still hasn’t fixed their headline, £2.3m or £2.3b.

    I heard that it was allegedly Iranian money that used to come from the Tehran Strip Club.
    They were stopped from investing in US real estate so the money had to go somewhere, the GFC supposedly gave them an opportunity to route the money via Qatar.

    This alleged spurious rumour could not possibly be true because international financiers are above reproach.

  2. Ignoring the story as the numbers are all over the place. And the reference to legalities mentioned in the article aside.

    Its technically possible to increase the capital of a banks balance sheet by lending the money to a client to buy shares, as the banks assets would increase but its deposit liabilities would not. Its margin of capital would therefore increase.

    Rather than “lending the money to buy the shares” the overall arrangement is that the the client is receiving shares in the bank in return for undertaking a loan contract to pay the bank money for in the future. That loan contract is an asset of a bank, and so increases the value of its assets.

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