Date
28 June 2017
Barclays avoided a state rescue during the 2008 financial crisis by raising 12 billion pounds (US$15.4 billion) from Qatari investors, but it now faces charges in connection with the deal. Photo: Bloomberg
Barclays avoided a state rescue during the 2008 financial crisis by raising 12 billion pounds (US$15.4 billion) from Qatari investors, but it now faces charges in connection with the deal. Photo: Bloomberg

Barclays, former bosses charged over 2008 Qatar fundraising

Barclays Plc and four former senior executives have been criminally charged in a high-profile British investigation into undisclosed payments to Qatari investors during a 12 billion pound (US$15.4 billion) emergency fundraising in 2008, Reuters reports.

The Serious Fraud Office (SFO) said on Tuesday it was charging the bank with conspiracy to commit fraud by false representation and unlawful financial assistance.

Barclays said it was considering its position over the charges and awaiting further information.

The SFO also charged John Varley, the bank’s former chief executive; Roger Jenkins, a former senior investment banker; Kalaris, a former CEO of Barclays’ wealth division; and Boath, ex-European head of financial institutions.

The four men are the most senior British banking executives to be charged since the financial crisis, which forced many lenders to seek government bailouts and sparked a global recession, Bloomberg said.

The bank was able to avoid a state rescue by raising 12 billion pounds (US$15.4 billion) from Qatari investors, but it now faces charges relating to fees paid as part of the deal and a US$3 billion loan facility made available to Qatar, the report said.

Since the financial crisis, Barclays has faced probes ranging from the rigging of key benchmark rates to more recent scandals related to how executives dealt with whistle-blowers.

Varley and Jenkins face three counts of conspiracy to commit fraud and unlawful financial assistance. Boath and Kalaris each face one fraud count.

A London court hearing is scheduled for July 3.

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CG

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