The Serious Fraud Office said Tuesday that former chief executive John Varley, former chairman of investment banking for the Middle East Roger Jenkins, ex-deputy head of investment banking Richard Boath and ex-wealth chief Thomas Kalaris face charges along with the bank.
Almost a decade after the fact, four former managers at United Kingdom bank Barclays have been charged with fraud for their role in a controversial capital raising at the height of the 2008 financial crisis.
The charges relate to undisclosed payments to Qatari investors during a £12 billion emergency fundraising in 2008 at the height of the financial crisis.
Barclays has also been charged with one offence of unlawful financial assistance contrary to section 151 (1) of the Companies Act 1985.
The defendants will appear before Westminster Magistrates’ Court on 3 July 2017.
In its own statement, Barclays said it is “considering its position in relation to these developments”.
Barclays responded that it “awaits further details of the charges from the SFO”.
Varley and Jenkins and the bank are charged with providing unlawful financial assistance. Therefore, I think the investment case for the bank on a long-term timeframe remains relatively positive.
It added: “As previously disclosed, the FCA (Financial Conduct Authority) issued warning notices in connection with its investigation into the advisory services agreements and the United States Department of Justice and the US Securities and Exchange Commission have also been conducting investigations relating to these same agreements”.
While news of the SFO charges is bad for Barclays, it is not unexpected.
Barclays also reaffirmed it was defending a civil claim against it, brought by PCP Capital Partners and PCP International Finance, in relation to the second capital raising.