The firm is a structured investment vehicle (SIV) and manages $5 billion of assets.
The SIV raised funds on the commercial paper money market and used this to make investments in mortgage-backed securities and other long-term investments.
But as the crisis in the US sub-prime market unfolded the funds had to sell assets and now Golden Key is going to pay out all commercial paper investors through a liquidity facility.
This means that Barclays will have to loan $1.5 billion to cover the commercial papers because of the liquidity facility underwritten by the bank.
Recently, BarCap has had to put $1 billion into another SIV-lite fund, Mainsail II, run by Solent, and $1.6 billion to save Cairn High Grade Funding I.
According to the Times, BarCap estimates that it will register a $152 million loss, at worst.