Barclays Shares Tanking After Plans To Raise Fresh Capital

Shares of Barclays, one of Britain's biggest banks, are down more than 7% today after the bank announced in its quarterly earnings release a new plan to fill a £12.8 billion capital shortfall in order to meet updated regulatory requirements.

The plan includes a £5.8 billion share offering, issuance of £2 billion in debt, and a £65-80 billion reduction of its loan book to approximately £1.5 trillion.

"If Barclays needs to raise that much capital, and it was relatively well capitalized by European standards, it suggests we've got a long way to go in Europe," the head of equities at a UK fund manager told Reuters.