Long term holder - excellent headline figures and nice divi increase. I do like to try to understand a bit about the companies I invest in, however and Barclays balance sheet has some lines which puzzle me. Their biggest asset is unsurprisingly "loans and advances to customers" 282BN, which even I can understand, but the next three biggest assets are "Trading Portfolio Assets" at 178BN, "Reverse Purchase Agreements and Cash collaterall on Securities Borrowed" at 174BN and "Derivative Financial Instruments" at 138BN. On the other side of the balance sheet are "Trading Portfolio liabilities" of 72BN, "Derivative Financial Instruments" at 140BN and "Repurchase Agreements and cash collateral on securities lent" at 137BN. With shreholders equity in the business of just 27BN these numbers seem uncomfortably large. Can anyone explain to me (with an example if possible) just what constitutes a typical item under each of these headings, as currently I have this vision of Nick Leeson being made to look a rank amateur?

Many thanks for making the effort Alan. Accept a lot of stock lending goes on and in theory I suppose this is a good thing as it helps market liquidity. I can't get it out of my simplistic mind, however, that if all this lot had to unwind at some stage and they lost just 10% along the way, then business could end up insolvent.I really do wonder how many of the Barclays Board would fully understand their positions in some markets (HSBC appeared not to when buying Household in the USA, if as I understand it some of those paid mega million bonuses a year or two ago are now sacked as losses become apparent).Ultimately, it seems to me that is the good customers who will end up paying for the losses racked up by greedy wheeler dealers within these organisations.

Guess every cloud has a silver lining. If I read RNS of 2nd August correctly, Barclays has issued 336M new shares to overseas investors at 720p, to raise some 2.4BN. It then says it will use that cash to buy back up to 2.4BN worth of own shares. So far it has bought back just under 27M shares at average price of around 672p. At that rate if it buys back 336M shares it will make a profit of around 180M (assuming my maths correct). Should go at least part of the way towards cost of unwinding some of the positions referred to above.......?!

And another 3.4million shares today bought back at 622p. Sold them yesterday for almost a pound more each, so unless I am missing something (and very happy to be corrected) a tidy profitof just under 3.4M. Why bother with banking...?

hmmm! not exactly a profit unless I am missing something. Depends at what price the shares were initially bought at, if say 822 then NO profit. However, you are right, the Nick Leesons of this world would represent this as a profit ....

One of us is missing something, sned, and not yet convinced it is me. On 14th August, Barclays collected 2.4BN in cash from new shares issued to overseas investors at price of 720p agreed some weeks ago (when Barclays price around that figure). To avoid any dilution for existing shareholders, it undertook to use that cash to buy back shares in the market for cancellation - net end result being that total shares in issue remains the same, but overseas investors replace some existing. My point is that the way things are going at present, Barclays will need considerably less than 2.4BN to buy back the same number of shares, so surely the surplus cash is a profit to them?

Looking back at my first post in Feb 2007 and wondering if the recently departed Edward Cahill might soon have his own book to write!

See BARC bought back another 4 million shares today for cancellation at 596p. Not bad, having sold them for 720p two weeks ago. Provides only a modicum of comfort against the steadily falling share price for long term holders such as me.

The chinese wont be happy at present but when the sub prime scare fades away and Barclays shares reach 8 face will be restored!!

Hoping that the press is right in that damage to Barc may be more reputational than financial. History suggests that memories short when the next good deal comes along

Barc must be totally fed up with the press comments on the BOE funding. I expect they are running around the office to make sure there is no repeat.