Barclays drops appeal and accepts $50m fine over 2008 Qatar fund dealings

Posted by Admin November 26, 2024 Travel

Barclays drops appeal and accepts m fine over 2008 Qatar fund dealings

The bank announced on Monday that it had withdrawn its appeal in case concerning mishandling 2008 Qatar payments.

Barclays Banks has announced that it had withdrawn its appeal to bring an end to a 16-year-old investigation.

In 2022, Britain’s Financial Conduct Authority (FCA) slapped a £50m ($62m) on Barclays bank due to failure in disclosing payments of £322m ($404m) made to Qatari entities in its fundraising efforts during the 2008 global financial crisis.

In 2008, Barclays sought urgent capital from international investors, including Qatar, to avoid a government bailout. The undisclosed payments were made to secure Qatari investment, but the bank failed to inform the market or its shareholders.

The FCA had described Barclays’ actions as “reckless and lacking integrity”, and was in breach of the UK’s listing rules.

Barclays appealed the £50m ($62m) fine in 2022. However, in a statement on Monday, the bank confirmed it would abandon the appeal, saying that “in view of the time elapsed since the events”, it wished to “draw a line under the issues”.

The FCA has reduced the fine to £40m ($50m) due to Barclays’ willingness to settle, although the bank has not accept the regulatory’s finding.

Barclays emphasised that withdrawing the appeal was in the best interests of the bank, its shareholders, and other stakeholders.

The case was scheduled to go to court on Monday, with former Barclays CEO John Varley among those expected to testify.

“Barclays’ misconduct was serious and meant investors did not have all the information they should have had,” said Steve Smart, joint executive director of enforcement and market oversight at the FCA.

“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,” he added.