Barclays takes £1.3bn hit in credit market turmoil

Banking giant Barclays today said it had taken a £1.3bn (€1.8bn) hit amid the turmoil in credit markets, with an £800m (€1.1m) write-down last month alone.

But the liability is far less than speculated in the market, with mounting rumours suggesting the group’s investment arm was nursing a £10bn (€14bn) black hole in its finances.