Thursday 30 August 2012

Barclays Bank Second Investigation


Barclays bank after being investigated and fined over £290m in the Libor scandal case and have to pay over £450m on mis-selling products to customers have find itself in another pitfall over its transaction in 2007. This latest investigation is about the funds raised from investors in Abu Dhabi and Qatar sovereign wealth funds just after the financial crisis.

The previous LIBOR investigation claims some causalities which includes the CEO Robert Diamond and the Chairman which will leave soon. This probe is about disclosure of the fees the bank intends to pay the Qatari authority. The 7 billion pounds raised from the middle east helps it to weather the storm in 2007 and eventually avoided any bailout funds from the UK government.

The bank however has appointed Antony Jenkins who runs Barclays Retail and Business Banking has the new chief executive with a basic salary of £1.1m and a performance bonus of up to 250% of his salary. The new CEO takes over at a very difficult time when the bank is facing a running battle with regulators as well as its reputation been damaged.
This series of investigation into the banks will however have a significant impact on its profit for the second half of the year.

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