Tag Archives: Barclays

Barclays Bank Gets Its Hands Slapped… and What Does That Change!!!??

Is getting its hands slapped a strong enough message? The latest in the bad bank sagas has the British bank, Barclays, red-faced. As it should.
CEO Jes Staley has been reprimanded for attempting to discover the identity of an internal company whistleblower. Mr. Staley stated that he was trying to protect a colleague from what he considered an unfair attack.
Mr. Staley took his inquiry so far he had Barclay employees reach out to postal inspectors in his attempt to discover who had anonymously mailed two letters to the Barclays board, which complained about the bank hiring a mid-level executive.
The resulting fallout will see Mr. Staley facing a significant pay cut plus regulatory probes.
The U.K. Financial Conduct Authority (FCA) has him under investigation which could result in a fine and a possible ban from the financial services industry if the FCA does not find him “fit and proper to lead the firm.”
Regards,
Richard

DOJ is probing Barclays over whistleblower scandal

The Justice Department is investigating UK banking giant Barclays and the US Postal Service over an alleged attempt to unmask a whistleblower, The Post has learned.

Barclays, at the request of Chief Executive Jes Staley, reached out to postal inspectors after its board received two letters mailed from an anonymous employee complaining about the hiring of a mid-level executive, according to a source familiar with the probe.

Justice Department investigators are trying to determine whether officials at Barclays or USPS inspectors may have violated civil Dodd-Frank whistleblower protections or even criminal law by attempting to unmask the employee, according to the source.

Read on.

Barclays CEO Is Probed Over Bid to Unmask Whistleblower

LONDON — Barclays PLC Chief Executive Jes Staley is under investigation by U.K. and U.S. regulators after he tried to unmask a whistleblower who criticized his hiring of a longtime associate for a top job.

The London bank said Monday it had also launched its own investigation into the matter.

Authorities are probing Mr. Staley’s actions in trying to identify the source of an anonymous letter that criticized the hiring of Tim Main, who was named in 2016 as head of the financial institutions group at Barclays, according to people with knowledge of the events. The letter also raised questions about Mr. Staley’s dealings with him when they worked together at J.P. Morgan Chase & Co.

The U.K.’s Prudential Regulation Authority and Financial Conduct Authority are probing both Mr. Staley and the bank over its treatment of whistleblowers Barclays said in a statement. The bank added that it had issued a formal reprimand to Mr. Staley and would make a “significant” cut to his bonus. It is also conducting its own review into Barclays’s controls.

Read on.

U.S. sues Barclays, ex-executives for mortgage securities fraud

The U.S. Department of Justice on Thursday sued Barclays Plc (>> Barclays PLC) and two former executives on civil charges of fraud in the sale of mortgage-backed securities during the run-up to the 2008-09 financial crisis.

The lawsuit was filed after Barclays resisted a penalty the U.S. government had sought in settlement negotiations, a person familiar with the matter said. The person would not disclose the government’s demand.

Major U.S. banks, including JPMorgan Chase & Co (>> JPMorgan Chase & Co.) and Bank of America Corp (>> Bank of America Corp), have paid tens of millions of dollars to settle similar claims over misconduct in the sale and pooling of mortgage securities, which helped to cause the financial crisis.

Barclays was among a handful of European banks still under investigation by the Justice Department, according to company disclosures. Deutsche Bank (>> Deutsche Bank AG) and Credit Suisse (>> Credit Suisse Group AG) are also in settlement talks, sources have said.

Barclays is accused of deceiving investors about the quality of loans underlying tens of billions of dollars of mortgage-backed securities between 2005 and 2007, according to the lawsuit filed in U.S. District Court in Brooklyn.

Read on.

Three former Barclays traders denied Libor appeal request

Three former Barclays (>> Barclays PLC) traders jailed for manipulating Libor benchmark interest rates after a London trial have been denied a request to appeal against their conviction and sentence, the wife of one said on Friday.

Julie Pabon said her husband, Alex, and former colleagues Jay Merchant and Jonathan Mathew were recently notified that their requests had been rejected by the Court of Appeal.

The men’s lawyers and the UK Serious Fraud Office (SFO), the prosecutor in the case, did not respond to requests for comment.

Pabon, an American, was sentenced to two years and nine months in jail in July. Merchant, his former New York-based superior, was sentenced to six-and-a-half years, and Mathew, a London-based junior rate submitter, was handed four years.

“I am shocked and saddened yet somewhat relieved that our fight appears to be nearing the end,” Julie Pabon wrote in an email received by Reuters.

Julie Pabon, an American who lives in the United States and had appealed directly to the head of the SFO, David Green, on behalf of her husband, said Alex had sent her a text message on June 30 after his London trial saying: “I’m sorry … guilty…”

Read on.

UBS, Barclays Settle With Bondholders In Libor Suit

Law360, New York (October 26, 2016, 2:55 PM EDT) — Bondholders suing major banks for allegedly conspiring to manipulate the London Interbank Offered Rate told a Manhattan federal judge on Wednesday that they have settled with UBS AG and Barclays Bank PLC.

UBS has reached a settlement with bondholders over Libor-rigging claims. (Credit: AP) The bondholders, whose claims against the banks were resurrected by the Second Circuit in May, told U.S. District Judge Naomi Reice Buchwald that they have reached a settlement with UBS and are finalizing one with Barclays over claims that the banks engaged…

Source: Law360

Fed Wants $1.2M Fine, Ban For Ex-Barclays Forex Trader

Law360, New York (August 29, 2016, 3:00 PM ET) — Barclays PLC’s former global head of its foreign exchange spot business should be fined $1.2 million and banned from the banking industry after using chat rooms with competitors to manipulate the market, the Federal Reserve Board said Monday.

Christopher Ashton’s “personal dishonesty” and disregard for his employer constitute unsafe and unsound banking practices and a breach of fiduciary duty under the Federal Deposit Insurance Act, the board said in its notice. The London-based trader was fired in May 2015 for misconduct while the bank pled guilty to criminal…

Source: Law360