Is the FSA to allow Barclays to increase its tier 1 capital ratio on the sale of iShares to CVC?

How does the FSA allow Barclays to claim an increase in its tier 1 capital ratio following the sale of iShares to CVC? Barclays has swapped a business that cost $2.2m to build up for $1.3m in cash and $3.1m in IOUs from a highly leveraged private equity deal, debt of the kind that no longer exists in the open market due to the recent high failure rate.

And will Bob Diamond really get his £4.7m bonus in cash; shouldn’t this be deferred until Barclays is sure to have been paid? Or is this another example of executives boosting their short term pay by taking balance sheet risks, knowing that if the worst comes to the worst the tax payer will pick up the mess of a failed high street bank?