Fraud probe launched into Barclays’ Qatar payments
Barclays has named Antony Jenkins as its new chief executive, just hours after it confirmed that the Serious Fraud Office has launched investigations into the bank’s deals with Middle East investors.
Shares in Barclays are expected to fall in early trade after the bank confirmed it was being investigated late on Wednesday.
In a statement issued after the stock market closed, the bank said: “Barclays confirms that the Serious Fraud Office has commenced an investigation into payments under certain commercial agreements between Barclays and Qatar Holding LLC”.It declined to add further comment.
The investigations relates to fees paid to Qatar Holding, part of sovereign wealth fund Qatar Investment Authority, which is understood to have made a £2 billion investment.
It’s the latest blow to the bank, which is still reeling from the Libor rate-rigging scandal which saw Barclays hit with a £290m fine and forced the departure of chief executive Bob Diamond.
Antony Jenkins, the former head of Barclays’ retail and business banking arm, says his top priority is to repair the bank’s damaged reputation.
We have made serious mistakes in recent years and clearly failed to keep pace with our stakeholders’ expectations. We have an obligation to those stakeholders and a unique opportunity to restore Barclays’ reputation. -Antony Jenkins, Barclays Chief Executive
“We have made serious mistakes in recent years and clearly failed to keep pace with our stakeholders’ expectations,” he said in the statement.
“We have an obligation to all of those stakeholders — customers, clients, shareholders, colleagues and broader society — and a unique opportunity to restore Barclays’ reputation by making it the ‘go to’ bank in all of our chosen markets.
Mr Jenkins will be paid a salary of £1.1m and will be eligible for a bonus of up to £2.75m.
Barclays is the only bank to have admitted attempting to rig Libor, though several others are also the subject of international investigations.
In July, the Financial Services Authority said it was investigating the bank and several current and former senior employees.
The bank raised billions of pounds from Middle East investors at the height of the financial crisis in 2008, which allowed it to avoid a bailout.