Margaret DoyleYou have to hand it to Barclays. The reported sale of BGI, its fund management arm, to BlackRock  for $13 billion is probably the best way that the bank could bolster its capital ratio.

It looks like it will end up with around $8 billion in cash and a fifth of the enlarged asset manager.

The gain on the sale would lift its equity tier 1 ratio to 6.8 percent from just over 6 percent, according to Nomura.

Combined with the strong earnings coming through from BarCap, its investment bank, this should be high enough for Barclays to survive both the further losses on legacy assets that it has so far resisted and recessionary write-downs.

The terms of the sale have not yet been disclosed, but they look like they will be much better for Barclays than April’s proposed sale of iShares, the most attractive part of BGI, to CVC, a private equity group.