- The Financial Conduct Authority (FCA) will impose a fine Barclays Plc UCS £50 million for failing to disclose certain agreements reached with Qatari companies as part of the capital raising announced in June 2008 and 31 October 2008.
- The supervisory authority described the bank’s behavior as “ruthless” and of little integrity.
- The Supreme Court decides whether this is the case maintain FCA decisions against Barclays or not and whether there are other actions the FCA should take.
- The capital raisings were carried out during the financial crisis of 2008 and were subject to intensive market and public scrutiny.
- Certain Qatari companies were key investors in both fundraising. At the same time, as part of the basis on which the Qatari companies agreed to participate in the capital raising, Barclays entered into two consultancy agreements involving payments to one of the Qatari companies totaling £322m over three and five years respectively.
- Barclays announced that it had entered into a consulting agreement in June 2008, but did not disclose the October agreement, the payments made under the fundraising, or how they relate to the Qatari companies’ participation in the fundraising.
- The FCA believes that this would have been extremely relevant information for shareholders, investors and the wider market, particularly in October 2008 when disclosed costs were already perceived as very high.
- Price promotion: BCS shares are down 2.13% to $6.43 during the premarket session last Check Friday.
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