Tuesday, 20 June 2017

Barclays bosses face criminal charges over 2008 Qatar deals

Barclays and four former senior executives are facing criminal charges relating to its emergency fundraising at the height of the banking crisis.
The Serious Fraud Office (SFO) capped a five-year investigation by announcing Barclays had been charged with conspiracy to commit fraud and the provision of unlawful financial assistance.

The case dates back to 2008 when the bank's rivals - Lloyds and Royal Bank of Scotland - took state bailouts as the financial sector came under huge strain.

The SFO said: "The charges relate to Barclays Plc's capital raising arrangements with Qatar Holding LLC and Challenger Universal Ltd, which took place in June and October 2008, and a $3bn loan facility made available to the State of Qatar acting through the Ministry of Economy and Finance in November 2008."

In addition to the allegations it was levelling against the bank, the SFO charged its-then chief executive John Varley and another senior executive at the time, Roger Jenkins, with conspiracy to commit fraud by false representation over the capital raisings.

They are also facing a charge of unlawful financial assistance.
Two other men in senior roles at the bank in 2008- Thomas Kalaris and Richard Boath - face a single charge of conspiracy to commit fraud by false representation in relation to the June 2008 fundraising only.

The case is due in court on 3 July.

The bank said in response that it was "considering its position in relation to these developments" and it had been informed by the SFO that it had not made a decision on whether to also bring charges against it in respect of the loan.

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

Barclays also reaffirmed it was defending a civil claim against it, brought by PCP Capital Partners and PCP International Finance, in relation to the second capital raising.

SKY       News.