Published: Tue, June 20, 2017
Economy | By Annette Adams

Barclays and four bank chiefs face fraud charges over 2008 crisis fundraising

Barclays and four bank chiefs face fraud charges over 2008 crisis fundraising

"The Serious Fraud Office has today charged Barclays Plc and four individuals with conspiracy to commit fraud and the provision of unlawful financial assistance" linked to capital raising from Qatar in 2008, the SFO said in a statement, adding that former CEO John Varley was one of those to face court. A civil claim has also been served on Barclays by PCP Capital Partners and PCP International Finance in relation to the November 2008 capital raising, which Barclays is defending. It's significant as the first set of charges brought against a major United Kingdom bank for crisis-era activity.

Varley and Jenkins and the bank are charged with providing unlawful financial assistance.

It added that the City watchdog, the Financial Conduct Authority (FCA), had reopened its investigation while USA authorities were continuing their own inquiries.

Barclays bank headquarters in Canary Wharf, east London. Therefore, I think the investment case for the bank on a long-term timeframe remains relatively positive.

A spokesman for the Qatar Investment Authority declined to comment. Barclays said it paid GBP322 million in "advisory services" to Qatari investors, which wasn't initially disclosed after the capital was raised.

"The FCA's investigation in relation to the advisory services agreements had been stayed in view of the SFO's investigation but that stay is now lifted".

The United States Department of Justice and the US Securities and Exchange Commission have also been carrying out investigations over the payments.

In one of the many ironies of the crisis, none of the executives at RBS and Lloyds at the time has faced criminal charges - a matter of much resentment among taxpayers who picked up the 53 billion pound check for the bailouts.

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