Barclays Hit By New Charge Over 2008 Emergency Fundraising
February 12 2018 - 4:05AM
Dow Jones News
By Max Colchester
Barclays PLC was charged for a second time by U.K. authorities
over a criminal case relating to an emergency share raising in
2008.
The Serious Fraud Office levied charges of unlawful financial
assistance against Barclays' operating company on Monday, in a move
that ramps up pressure on the British lender. Last summer U.K.
authorities charged Barclays over a $3 billion loan it made to
Middle Eastern investors stemming from struggles in 2008. The
British prosecutors had said the funds were then plowed back into
Barclays to recapitalize it. Barclays has previously denied the
allegations.
Those initial charges were made against the Barclays holding
company. The new charge is significant as the operating company,
Barclays Bank PLC, owns the lender's banking license. Regulators
must deem the subsidiary to be "fit and proper" to hold the
license. If found guilty, Barclays could, in theory, be at risk of
losing its banking license.
In a statement Barclays said it would defend itself against the
charges. The bank added that it didn't expect there to be any
impact on its "ability to serve" customers. The bank hasn't said
whether it would plead guilty or not against the charges.
The SFO case has sucked in a cadre of former executives who
helped structure the deal at the height of the crisis which allowed
the British bank to avoid being bailed out by taxpayers. The SFO
has spent years probing how Barclays managed to woo Qatari
investors to pump funds into the struggling bank. In particular
what the purpose was of GBP322 million in "advisory services" that
bank paid to Qatari investors.
British prosecutors last summer charged the former chief
executive of Barclays with fraud and illegal payments along with
three other former executives. A date for the trial is expected in
due course.
Write to Max Colchester at max.colchester@wsj.com
(END) Dow Jones Newswires
February 12, 2018 03:50 ET (08:50 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
Barclays (NYSE:BCS)
Historical Stock Chart
From Mar 2024 to Apr 2024
Barclays (NYSE:BCS)
Historical Stock Chart
From Apr 2023 to Apr 2024