by Thinker
Barclays is facing a court battle over hundreds of millions of taxpayer pounds after 14 local councils filed a mass legal action against the bank. Greater Manchester, Bristol, Liverpool and Leeds are among the local authorities accusing the bank of fraud over loans to councils and other public bodies that were once worth billions. Barclays is accused of rigging interest rates and thereby potentially manipulating charges to borrowers.
The High Court claim, seen by The Mail on Sunday, relates to hugely controversial Lender-Option, Borrower-Option loans, commonly known as Lobo loans. These have been described as ‘lose-lose’ for borrowers and the attached terms have already sparked public outrage. Campaign group Debt Resistance UK estimates that at least 240 councils took out these loans from lenders such as Barclays and are saddled with:
www.dailymail.co.uk/money/news/ar…storm.html
The longer an organization is in business, the more history they have to tell the client whether it is a company of honesty and integrity, or its a company that is riddled with stories that should make one question whether or not to do business with them. Knowing the history of the individual and company is important.
Barclays, 4 former top execs charged with fraud
The U.K.’s Serious Fraud Office on Tuesday filed criminal charges against Barclays PLC and four former top executives linked to their handling of Middle Eastern investments that rescued the bank at the height of the financial crisis. The SFO charged the individuals and the bank with conspiracy to commit fraud. Two individuals, including its former Chief Executive John Varley, were also charged with the provision of unlawful financial assistance.
The allegations center on how Barclays structured two capital injections from Qatari investors as the bank raised GBP11.8 billion ($15 billion) to prop it up during the 2008 financial market meltdown. Barclays said it paid GBP322 million in “advisory services” to Qatari investors, which wasn’t initially disclosed after the capital was raised. The SFO’s charges also relate to a $3 billion loan facility Barclays made to the State of Qatar acting through:
www.marketwatch.com/story/barcla…2017-06-20
UK banks named in football bribery scandal: Barclays and HSBC ‘handled millions in suspect transactions’
Barclays and HSBC have been named in legal papers filed in the US
Documents have also named London-based Standard Chartered Bank
Allegedly moved suspect transactions linked to Fifa through their accounts
Britain’s Serious Fraud Office is understood to be monitoring situation
www.dailymail.co.uk/news/article-…-cash.html
2017 – Barclays banker pleads guilty to part in £16m money laundering network
The NCA says Nilesh Sheth, a personal banking manager at Barclays, was instrumental in the opening of a large number of these ‘mule’ accounts, using false ID and address documents. Prior to their arrests on 3 November 2016, the group was under surveillance by the NCA and was seen meeting with Sheth on numerous occasions at the bank, and in public places including restaurants and car parks. Sheth and both Bivol brothers pleaded guilty to their roles in the conspiracy. Gincota opted to go to trial but later pleaded guilty to fraud offences.
anticorruptiondigest.com/anti-co…g-network/
Barclays to Pay $97 Million for Overcharging Clients
Washington D.C., May 10, 2017 —
The Securities and Exchange Commission today announced an enforcement action requiring Barclays Capital to refund advisory fees or mutual fund sales charges to clients who were overcharged.
In a settlement of more than $97 million, Barclays agreed to settle three sets of violations that resulted in clients being overbilled by nearly $50 million. The SEC’s order finds that two Barclays advisory programs charged fees to more than 2,000 clients for due diligence and monitoring of certain third-party investment managers and investment strategies when in fact these services weren’t being performed as represented. Barclays also collected excess mutual fund sales charges or fees from 63 brokerage clients by recommending more expensive share classes when less expensive share classes were available. Another 22,138 accounts paid excess fees to Barclays due to miscalculations and billing errors by the firm.
“Barclays failed to ensure that clients were:
www.sec.gov/news/press-release/2017-98
2015 – FCA fines Barclays £72 million for poor handling of financial crime risks
The failings relate to a £1.88 billion pound transaction (Transaction) that Barclays arranged and executed in 2011 and 2012 for a number of ultra-high net worth clients. The clients involved were politically exposed persons (PEPs) and should therefore have been subject to enhanced levels of due diligence and monitoring by Barclays.
www.fca.org.uk/news/press-releas…rime-risks