Banker?

Barclays Bank’s share price halved last week which was good news for those spread betting on that scenario. The bank decided to rush out a statement last week declaring its profits to be “well ahead” of expectations only to find its shares in a dire position anyway.

There are rumors that the bank may lose control to its new Middle Eastern backers which did nothing to halt the fall of the shares. Spread betting on this kind of event happening could have seen massive returns.

It’s the nature of spread betting that the loss of such shares can mean very lucrative numbers for a player. To witness the UK’s fourth largest lender capitulate to 61 and a halve pence, having been, at one point, 13.5% up earlier on in the day’s trading is remarkable.

Those spread betting on the bank running into difficulties might have been aware of the investment agreement negotiated with Sheikh Mansour Bin Zayed Al Nahyan, a member of the Abu Dhabi royal family and two Qatari investment companies that have offered a ‘shares for capital’ type deal.

Uncertainty about the future of the bank would have fuelled dramatic share price shifts and its little wonder that spread betters were ready to speculate on which way the price would go. Get it right and you’ve made a killing, get it wrong…