Barclays’s $600 Million Blunder Follows Years of U.S. Run-Ins
- Bank repeatedly engaged with SEC over seasoned issuer status
- Cost of clerical error put at $600 million by British lender
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Barclays Plc’s $600 million structured products blunder has little precedent on Wall Street. But the bank’s past misconduct may have set the stage for the paperwork fail it revealed this week.
A key issue at the heart of the regulatory breach appears to be its loss of the so-called well-known seasoned issuer status in 2017, a right granted by the U.S. Securities and Exchange Commission that allows banks to sells notes in the U.S. with fewer filing requirements.