Barclays has reportedly sought the assistance of former CEO John Varley to contest a $50 million fine. The British banking giant is set to appear before the upper tribunal in London this week to challenge the penalty related to an emergency fundraising involving Qatari investors during the peak of the 2008 financial crisis.
The case revolves around the measures Barclays took to avoid a government bailout following the collapse of Lehman Brothers. These actions led to criminal and regulatory investigations and two unsuccessful prosecutions. Varley, who became the first top bank CEO to face a jury due to the financial crisis, was eventually acquitted, though the case prompted changes in the U.K.’s corporate criminal liability laws.
The U.K.’s Financial Conduct Authority (FCA) now claims that Barclays breached British listing rules by failing to disclose that it paid higher fees to Qatari investors compared to other investors during two 2008 share sales that raised £11.8 billion. The FCA, which announced the proposed fine in 2022, accused Barclays of acting recklessly and misleading its investors.
The stakes are substantial for both parties. A successful outcome for Barclays and Varley would mark a victory in a prolonged effort to defend their reputations. For the FCA, this case represents a final opportunity to hold a major bank accountable for misconduct related to the 2008 financial crisis.
In a separate matter, Barclays recently agreed to pay $4 million to settle charges by the U.S. Commodity Futures Trading Commission (CFTC). These charges were linked to violations of the Commodity Exchange Act and CFTC regulations concerning swap reporting. The CFTC noted that, between 2018 and 2023, Barclays failed to accurately or promptly report over 5 million swap transactions. The errors included duplicate swap identifiers, incorrect reporting of primary economic terms, inaccurate timestamps, data continuation errors, and late reporting.
Have you read?
Best countries for hiring freelancers.
Highest Paid Big Pharma CEOs And Top Executives.
Best Websites For CEOs, business leaders, and high-net-worth individuals.
Best Executive Search Firms And Consultants in America.
Revealed: Most Powerful Women In The World.
Add CEOWORLD magazine to your Google News feed.
Follow CEOWORLD magazine headlines on: Google News, LinkedIn, Twitter, and Facebook.
Copyright 2024 The CEOWORLD magazine. All rights reserved. This material (and any extract from it) must not be copied, redistributed or placed on any website, without CEOWORLD magazine' prior written consent. For media queries, please contact: info@ceoworld.biz
