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Barclays faces two further US investigations

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Barclays has revealed it faces two further probes in the US as the group announced its third quarter results.

The bank, which has already been fined £290m by US and UK regulators for manipulating Libor in June this year, is facing a probe from the US Department of Justice and the US Securities and Exchange Commission on whether its relationships with third parties who assist the bank win or retain business are compliant with the US Foreign Corrupt Practices Act.

The second investigation is being made by the United States Federal Energy Regulatory Commission with regards to Barclays power trading in the western US between 2006 and 2008.

In a statement, the bank said: “On 25 October 2012, the FERC notified Barclays that it has authorised the issuance of a public Order to Show Cause and Notice of Proposed Penalties against Barclays in relation to this matter. The Order and Notice could be issued as early as today. Barclays intends to vigorously defend this matter.”

The news comes as Barclays revealed a third quarter pre-tax statutory loss of £47m for the three months to 30 September, 2012.

The loss compares to profit in the third quarter of 2011 of £2.4bn and a second quarter profit of £1.2bn. The loss was on the back of a £1.1bn charge against the value of its own debt as well as the impact of £700m provision for PPI compensation.

At 8.52, the bank was the biggest faller in the FTSE 100 with its share price down 3.6 per cent to 230.3p a share.


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