The Serious Fraud Office has charged Barclays PLC and four of its former bosses with “unlawful financial assistance” in relation to billions of pounds obtained from its 2008 deal with Qatar Holdings. Former Chief Executive John Varley and senior investment banker Roger Jenkins are among the four senior officials charged.
The charges have been brought in relation to Barclays PLC’s transactions with Qatar Holdings. In 2008, Barclays loaned £12 billion from Qatar Holdings, and under the same deal, paid the company £2.3 billion. SFO has classified the move as “unlawful financial assistance”, alleging that the loan was used to buy shares in the PLC.
As the first British Bank to be charged for their conduct during the 2008 financial crisis, Barclays stands to lose its license to operate in countries if found guilty.
Barclays loaned money to Qatar Holdings, who then used the money to buy shares in Barclays – avoiding the need for a government bailout. Barclays now facing chargeshttps://t.co/XT1brjig8o pic.twitter.com/5WirXgaudS
— Laurie Macfarlane (@L__Macfarlane) February 12, 2018
Since being charged, the bank has announced further actions regarding the case in a public statement: “Barclays PLC and Barclays Bank PLC intend to defend the respective charges brought against them.’’
The bank is also confident of the case not impacting immediate business: “Barclays 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.”
Conversations are now springing up about how the charges will affect the business, since thee SFO initially charged the parent company and not the bank itself. As of now, there has been no change in the markets around Barclays.
Similar charges were made against Barclays PLC last year in June. The senior management officials charged stand to face trial in 2019.
Sub Edited-Lavanya Singh
Featured Image- Image taken from Wikipedia.