By Chris Vellacott
LONDON, July 30 (Reuters) - A top Barclays investorhas blasted financial regulators for a "lack of stability orconsistency" in capital requirements, warning they couldundermine efforts to sell off government stakes in bailed outlenders.
David Cumming, head of equities at Standard LifeInvestments, said the regulatory regime "appears both capriciousand hostile to banks and is in consequence raising the cost ofcapital for the banking sector, notably through a lack ofstability or consistency in its policy on capital."
"From a taxpayer and investors viewpoint this must change.If not funding available for business both large and small willbe reduced while funds realised from future government sharesales will be materially below the levels achievable if we had amore objective and coherent regulatory policy," Cumming said incomments emailed to Reuters on Tuesday.
His comments came after Barclays said it is seeking to raise5.8 billion pounds from its shareholders to help plug a largerthan expected capital shortfall identified by Britain'sfinancial regulator.
Standard Life Investments, the fund management arm of UKinsurer Standard Life, is the fifth largest shareholderin Barclays, holding a 1.3 percent stake according to ThomsonReuters data.
The British government is expected to start selling some ofits 39 percent stake in Lloyds Banking Group which, ifsuccessful, would mark a major milestone in Britain's recoveryfrom the 2008 financial crisis. Taxpayers pumped 66 billionpounds into rescuing Lloyds and Royal Bank of Scotland.[ID: nL6N0FH3DZ]
The Bank of England's Prudential Regulation Authority (PRA)said on Tuesday Barclays needed an extra 12.8 billion pounds tostrengthen its capital reserves against potential market shocks,more than an estimate of about 7 billion a month ago, due mainlyto tougher European rules on the way banks measure risks.
Barclays (BARC)
Lloyds (LLOY)