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Barclays group finance director faces FSA investigation

Barclays Rain 480

Barclays group finance director Chris Lucas is under investigation by the FSA over disclosure failures relating to “certain commercial arrangements” and whether they were linked to Barclays capital raisings in June and November 2008.

The investigation also involves three other current and former Barclays employees.There are no further details at this stage.

In a statement, Barclays says: “The FSA has commenced an investigation involving Barclays and four current and former senior employees, including Chris Lucas, group finance director.

“The FSA is investigating the sufficiency of disclosure in relation to fees payable under certain commercial agreements and whether these may have related to Barclays capital raisings in June and November 2008.

“Barclays considers that it satisfied its disclosure obligations and confirms that it will cooperate fully with the FSA’s investigation.”

An FSA spokesman declines to explain the nature of the investigation but says the decision to make it public was made independently by Barclays.

The bank’s interim statement, published today, reveals statutory pre-tax profits fell 71 per cent from £2.6bn in the first six months of 2011 to £759m during the same period this year.

Barclays adjusted pre-tax profit figure, which excludes the impact a number of factors including PPI redress, was up 13 per cent from £3.7bn to £4.2bn.

The bank was forced to set aside £300m for PPI misselling claims in the first half of 2012.

Barclays has also made a £450m provision for redress in relation to interest rate hedging products sold to small and medium sized business.

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Comments

There are 2 comments at the moment, we would love to hear your opinion too.

  1. A bit like Totters Independent Traders, Barclays are still making some cash after the fines. No income tax, no VAT, no money back, no guarantee. lmao.

  2. There is an old saying – when in trouble, attack. It doesn’t really matter who you attack, just as long as you can divert attention from your own failings.
    Barclays made statements during the recent Parliament Committee sessions regarding the monitoring of LIBOR that should in a normal democratic society have triggered calls for a serious investigation of the ability of the FSA and the BoE to do its job. Both Regulators apparently did get warning bells in 2008, possibly 2007, but nothing is done. Barclays have been castigated. There are other Banks that apparently should be castigated, but no word on them to date. 4 years after the first hints. The FSA have made public their dislike of Barclays business culture. Is this the reason that they are the only one, currently, in the firing line? I wonder if we will ever hear of the others.
    And what also happened in 2008 that the FSA missed. Middle East investors bailed out Barclays Bank, and made quite a killing for taking a high risk stake in the Bank. I can remember those deals from the newspaper reports. Why? Because a large part of the coverage related to the amount of commission that was being paid to certain individuals. (Yes, I was green with envy). The question arises then as to how there can be failures relating to disclosure. The newspapers knew, and so did the rest of the world. If there was a failure to disclose how did the newspapers get the information?
    I believe that this matter has nothing at all to do with regulation. 4 years after the transaction, during which they have again been looking the other way, we have an investigation. Just when questions are being asked about the competence and probity of the FSA. Is this a co-incidence? Or it it spite?
    To me the most corrupt part of this episode is the FSA themselves. When there is a problem they lash out indiscriminately in order to deflect attention from their own inadequacies.
    I’m no fan of Barclays, but this type of behaviour by the FSA is more likely to earn Barclays sympathy. A lot happened in 2008 and 4 years on the FSA are still struggling to come to terms with it.
    The chief actors at Barclays have resigned. Have you ever heard of anyone resigning for incompetence from a Regulator? Are the FSA so rotten from head to foot that no one has the integrity to resign because of these failures? And without integrity what value is a Regulator?

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