Barclays reveals 2 new US regulatory probes
Source: Agencies |
November 1, 2012, Thursday
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Print Edition
Print Edition
BARCLAYS, already rocked by an interest rate rigging scandal, unveiled two new US regulatory investigations into the bank's financial probity yesterday and said its profit was hit by charges for mis-selling insurance.
Following investigations in the UK over its dealings with Qatari investors, Barclays said the Department of Justice and Securities and Exchange Commission were investigating whether its relationships with third parties who help it win or retain business are compliant with the US Foreign Corrupt Practices Act.
The bank is now under investigation by Britain's financial regulator and fraud prosecutor into payments to Qatari investors after it raised billions of pounds from the Gulf state five years ago to save it from taking a taxpayer bailout.
The Financial Services Authority is investigating the bank and four current and senior employees, including finance director Chris Lucas, to see whether it made adequate disclosure of the fees it paid in a 2008 capital raising.
Barclays disclosed the FSA investigation when it released half-year results in July. The FSA probe relates to fees paid to the Qatar Investment Authority on deals in June and November 2008, when Barclays raised 11.5 billion pounds (US$18.5 billion).
Barclays declined to comment on whether the US probe was linked to the same transactions.
Barclays also said yesterday the US Federal Energy Regulatory Commission was investigating whether it manipulated power prices in the western United States from late 2006 until 2008.
FERC could notify the bank of proposed penalties as early as yesterday, it said. Barclays said it would "vigorously" defend this matter.
New Barclays Chief Executive Antony Jenkins, who took over at the end of July when his predecessor Bob Diamond quit after the bank admitted rigging Libor interest rates, is in the midst of a review aimed at changing its culture and boosting profitability, which may cut jobs and the size of investment banking.
"While we have much to do to restore trust among stakeholders, our universal banking franchise remains strong and well positioned," Jenkins said.
The bank said its adjusted pretax profit in the three months to the end of September was 1.73 billion pounds, in line with analysts' forecasts and up from 1.34 billion pounds a year ago.
Following investigations in the UK over its dealings with Qatari investors, Barclays said the Department of Justice and Securities and Exchange Commission were investigating whether its relationships with third parties who help it win or retain business are compliant with the US Foreign Corrupt Practices Act.
The bank is now under investigation by Britain's financial regulator and fraud prosecutor into payments to Qatari investors after it raised billions of pounds from the Gulf state five years ago to save it from taking a taxpayer bailout.
The Financial Services Authority is investigating the bank and four current and senior employees, including finance director Chris Lucas, to see whether it made adequate disclosure of the fees it paid in a 2008 capital raising.
Barclays disclosed the FSA investigation when it released half-year results in July. The FSA probe relates to fees paid to the Qatar Investment Authority on deals in June and November 2008, when Barclays raised 11.5 billion pounds (US$18.5 billion).
Barclays declined to comment on whether the US probe was linked to the same transactions.
Barclays also said yesterday the US Federal Energy Regulatory Commission was investigating whether it manipulated power prices in the western United States from late 2006 until 2008.
FERC could notify the bank of proposed penalties as early as yesterday, it said. Barclays said it would "vigorously" defend this matter.
New Barclays Chief Executive Antony Jenkins, who took over at the end of July when his predecessor Bob Diamond quit after the bank admitted rigging Libor interest rates, is in the midst of a review aimed at changing its culture and boosting profitability, which may cut jobs and the size of investment banking.
"While we have much to do to restore trust among stakeholders, our universal banking franchise remains strong and well positioned," Jenkins said.
The bank said its adjusted pretax profit in the three months to the end of September was 1.73 billion pounds, in line with analysts' forecasts and up from 1.34 billion pounds a year ago.
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