Discussions between Barclays (BCS) and regulators regarding measures the bank will take to...

|About: Barclays PLC (BCS)|By:, SA News Editor

Discussions between Barclays (BCS) and regulators regarding measures the bank will take to bridge a £7B capital shortfall were still ongoing Friday evening, FT says. BCS is widely expected to unveil a series of new measures to help boost its capital levels when it reports earnings on Tuesday. One option reportedly under discussion: contingent convertible bonds ("cocos", affectionately) which automatically convert to equity or, in the case of some issues, are written down in the event certain thresholds (a preset Tier one capital ratio for instance) are breached. The bank may also shrink its balance sheet by reducing derivative and repo transactions.