Recriminations flew between two of Britain’s biggest banks on Wednesday after Barclays appeared to blame HSBC, its larger rival, for forcing it to tap emergency financing from the Bank of England. HSBC executives were understood to be furious at suggestions that a processing error by HSBC forced Barclays to borrow £314m from the central bank’s emergency facility on Monday afternoon. The row underlines the fragile state of the financial markets as investors watch for signs of distress in the banking sector.

This entry was posted by Gwen Robinson on Thursday, August 23rd, 2007 at 5:46 and is filed under Capital markets. Tagged with barclays, hsbc. Edit this entry.