- Barclays sought a fundraise in 2008 in efforts to avoid bailouts faced by rivals
Barclays has been fined £40million over secretive payments to Qatari institutions during the 2008 global financial crisis.
The Financial Conduct Authority had previously handed Barclays a £50million fine as the regulator in 2022 branded the lender ‘reckless and lacking integrity’ for failing to disclose £322mllion in ‘advisory fees’ paid to a Qatari firm, allegedly in return for a £4billion investment.
While Barclays announced the cash injection by Qatar, it did not disclose the fees it had paid.
The FCA, which had been investigating the group since 2013, said on Monday it would now only fine Barclays £40million after the bank decided not to contest the regulator’s findings with an Upper Tribunal appeal.
Barclays said in a statement that while the lender ‘does not accept the findings’ of the regulator, it ‘wishes to draw a line under’ the investigation.
The bank earmarked a provision to cover the financial penalty in 2022, so it will suffer no material financial impact.
Barclays raised £4billion from Qatar during the 2008 global financial crisis
Barclays said: ‘Notwithstanding the difference of view, Barclays has concluded that the interests of the bank, its shareholders and other stakeholders are best served by withdrawing the References.’
The FCA said it recognised the case was’ made in the context of very large and complex capital raisings that took place many years ago under considerable market pressure’.
The capital raise was made at a time of ‘national importance’, the regulator added, with Barclays desperate to avoid a bailout in 2008 like rivals Natwest and Lloyds.
It also noted that none of the current Barclays board or senior management were involved in the 2008 fundraise.
Four Barclays execs, including former boss John Varley, became the first British bankers to face criminal charges over financial crisis-era conduct when they were taken to court in 2019 over their role in the fundraising.
The FCA said: ‘The most recent executive leadership, with the support of the current Barclays board, has made significant progress in implementing changes to Barclays’ systems and controls.’
Steve Smart, joint executive director of enforcement and market oversight at the FCA, added: ‘Barclays’ misconduct was serious and meant investors did not have all the information they should have had.
‘However, the events took place over 16 years ago and we recognise that Barclays is a very different organisation today, having implemented change across the business.
‘It is important that listed firms provide investors with the information they need.’
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