Barclay’s shares tumble

Although the chief executive of banking giant Barclay’s has been trying to calm down the financial markets by insisting that the government’s bailout plan is going to help the banking industry, investors are still in a state of panic, which has resulted in shares in Barclay’s as well as in other banks plunging recently.

At the end of last week shares in Barclays tumbled for the ninth day in a row, losing nearly 14 percent on Friday. According to figures the value of shares in Barclays has fallen by around two thirds since 12th January, and this has resulted from concerns that the bank may have to go to the government for bailout cash due to financial instability.

In the meantime the government is being criticised by many over plans to use taxpayers’ money to underwrite hundred of billions of pounds worth of possible losses as part of an insurance type bailout scheme, where lenders would pay a fee to have the government take on some of the risk of loans to households and businesses.

The move by the government has come under fire from members of the opposition parties, who have expressed concern over the way that Labour is throwing billions of pounds worth of taxpayers’ money at the banking industry, and claiming that the last £37 billion pound bailout didn’t work.