Speculation has arisen the Barclays could be nationalized, which raises a big question for holders of its line of iPath exchange traded notes (ETNs).
The New York Times recently reported that Barclays would be cutting 2,100 jobs within their investment banking and wealth management division. This news comes at a sour time. Many banks have lost money in the last year, some have collapsed altogether. As debt instruments backed by the creditworthiness of their issuer, this has some wondering about the safety of these ETNs. It was illustrated earlier this year after Lehman Brothers went bankrupt, creating anxiety amid the ETN industry, reports Joe Morris for Ignites.