Barclays Operating Unit Added to 2008 Fundraising Criminal CaseBy
SFO charged group and former executives in June 2017
Bank is sixth defendant in case, along with four ex-executives
Barclays Plc’s operating unit was added to a criminal case stemming from the lender’s controversial 12 billion-pound ($16.9 billion) fundraising at the height of the financial crisis a decade ago.
The Barclays Bank Plc unit, accused of “unlawful financial assistance,” was added to the case relating to a $3 billion loan the bank secured from Qatar in November 2008 by Judge Deborah Taylor during a short hearing at Southwark Crown Court in London. It joins the holding company and four former executives, including ex-Chief Executive Officer John Varley, in facing charges in the Serious Fraud Office case.
A trial is scheduled for early 2019.
Any charges against the operating unit are problematic because, if convicted, the lender’s ability to do business globally might be affected. Regulatory approvals and banking licenses are usually tied to banks’ operating units, through which products and services are provided.
Officials at Barclays didn’t immediately respond to a request for comment on Friday.
After the charge was announced Monday, the bank said it “does not expect there to be an impact on its ability to serve its customers and clients as a consequence of the charge having been brought.”
— With assistance by Stephen Morris