Published: Mon, February 12, 2018
Business | By Max Garcia

Barclays Bank charged for £12bn Qatari loans

Barclays Bank charged for £12bn Qatari loans

'Barclays noted that the SFO at that time had not made a decision as to whether it would also bring charges in relation to the loan against Barclays Bank.

The Serious Fraud Office charged Barclays Bank PLC with unlawful financial assistance on Monday over a $3 billion loan it made to Qatar in 2008, adding to the same charges brought in 2017 against the banking unit's financial services parent company, Barclays PLC.

When the charges were announced past year, the SFO had still to take a decision on whether to charge Barclays Bank PLC, the main operating unit, but has pushed ahead this month. This licence could be withdrawn if Barclays Bank is found guilty.

Barclays pulled off an £11.8bn fundraising package from Qatari backers and other investors in 2008 to sidestep the need for a Government rescue, which left Lloyds and RBS part-nationalised.

After a five-year investigation into the events surrounding the cash call, the action by the SFO last summer marked the first criminal charges to be brought in the United Kingdom against a bank and its former executives for activities during the financial crisis.

In response, Barclays said: "Barclays PLC and Barclays Bank PLC intend to defend the respective charges brought against them".

The trial of Barclays PLC and four former top executives on a separate charge of conspiracy to commit fraud by false representation when they negotiated a capital injection for the bank from Qatar, is due to start next January.

Barclays' share price has advanced in today's session, having jumped 1.22 percent to 195.25p as of 09:22 GMT.

Qatar, which is a major United Kingdom investor, has not been accused of wrongdoing.

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