New regulatory demands require that Barclays fill a £12.8 billion shortfall in its capital resources.
The banking regulator, the Prudential Regulation Authority (PRA), has determined that in order to protect against investment losses in the event of future financial crises, banks must hold more capital.
The sale has caused Barclay’s stock to plunge by nearly 6%, although the bank is boosting its dividend payout to reward shareholders.
Barclays new Chief Executive Antony Jenkins has stated that the bold plan wouldn’t reduce the bank’s lending to individuals and small businesses.
He stated: ‘I am certain the decisive and prompt action we are taking will leave Barclays stronger’.