Barclays Bank charged over $3bn financial crisis deal

Barclays HQ

British prosecutors have brought another charge against Barclays over its 2008 deal to give Qatar a loan that was then used to invest in the bank and save it from a government bailout.

The same charge was made against the bank's holding company last June, but it is the operating unit that is licensed for banking operations, meaning any conviction could also prompt sanctions from regulators.

'Further to that announcement, the SFO has today charged Barclays Bank with the same offence'.

The new charges are in addition to those already levied against Barclays Plc.

In a statement, Barclays said: "Barclays Plc and Barclays Bank Plc intend to defend the respective charges brought against them".

In return Barclays loaned £2.3bn to Qatar Holdings.

Money was pumped in by State-backed Qatari investors, as well as Abu Dhabi royals and investors from Singapore.

That included a $3bn loan made to the State of Qatar acting through the Ministry of Economy and Finance in November 2008.

After a five-year investigation into the events surrounding the cash call, the action by the SFO last summer marked the first criminal charges to be brought in the United Kingdom against a bank and its former executives for activities during the financial crisis.

Reuters quoted analysts at Keefe, Bruyette & Woods as saying that while it was unhelpful for Barclays that the SFO has added charges, it should not change the dynamics of the case materially.

It follows charges against the bank's holding company and four executives in June a year ago related to the same deal.

Related:

Comments


Other news