Finance
Barclays Told to Review Leveraged Finance as UK Probes Industry
- Review requires Barclays to hire outsider to examine practices
- UK has ordered many banks to stress test private equity ties
The headquarters of Barclays Plc in Canary Wharf.
Photographer: Jason Alden/BloombergThis article is for subscribers only.
UK regulators have ordered Barclays Plc to review its leveraged finance business as concern grows inside the Bank of England over how lenders across the industry are measuring their exposure to the giants of private equity.
The central bank’s Prudential Regulation Authority has instructed Barclays to commission a section 166 review of the business, according to people familiar with the matter. These reviews force a firm to bring in an outside expert to examine their practices and produce an independent report for the authorities, which can then prompt further action if necessary.