Former Barclays chief executive Bob Diamond will not have to appear in court to discuss claims the bank mis-sold an interest rate swap to a UK care home, after the two parties agreed a settlement.
The FT reports that Graiseley Properties, the owner of Guardian Care Homes, has dropped the claim against Barclays in return for the bank restructuring the outstanding £70m owed for the swap.
Diamond was due to appear in court later this month along with former co-heads of Barclays’ investment banking division Jerry del Missier and Rich Ricci.
According to the report Barclays has agreed to write down the debt owed by Graiseley on the swap, though details of the settlement remain confidential.
A statement from Barclays says: “In response to discussions with Graiseley, in order to support the ongoing viability of Graiseley’s care home business, the parties have agreed to a commercial restructuring of Graiseley’s debt, which reflects the impact of changes in conditions in this sector over the past few years.”
Barclays was fined £290m in June 2012 by UK and US regulators over its role in the Libor rigging scandal.
In February the Serious Fraud Office charged three former Barclays bankers in relation to claims over the Libor manipulation scandal.