Trouble continues at Barclays; hit by fresh US investigations
Barclays said the US Department of Justice and US Securities and Exchange Commission (SEC) were investigating whether its relationships with third parties who help it win or retain business are compliant with the US Foreign Corrupt Practices Act.
The bank is already under investigation by Britain’s financial regulator and fraud prosecutor into payments to Qatar investors after it raised billions of pounds from them five years ago to save it from taking a taxpayer bailout.
Barclays said it is also being investigated by the US Federal Energy Regulatory Commission about the manipulation of power prices in the western US from late 2006 until 2008. “FERC could notify the bank of proposed penalties as early as Wednesday,” it said. Barclays said it will vigorously defend this matter.
New Barclays Chief Executive Antony Jenkins, who took over at the end of July when his predecessor Bob Diamond quit after the bank admitted rigging Libor interest rates, is in the midst of a review aimed at overhauling culture and boosting profitability, which is expected to cut jobs and the size of investment banking.
While we have much to do to restore trust among stakeholders, our universal banking franchise remains strong and well positioned, Jenkins said.
The bank said its adjusted pretax profit in the three months to the end of
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