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Bad debt up at Barclays

Barclays chief John Varley has said conditions in financial markets are the worst it has seen "in many years".

Total bad debts for the six month period were £2.4bn, up from £959m a year ago after a big rise in debts at its commercial banking business.

First-half profits at its investment bank arm Barclays Capital dropped 68% to £524m as the division was hit with credit-related losses of £2bn.

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