The FTSE 100 bank confirmed Monday that its subsidiary Barclays Bank had been charged by the fraud watchdog in connection with giving “unlawful financial assistance” during its emergency fundraising efforts in 2008.
To help stay afloat post-global financial crisis, the SFO alleges that Barclays gave Qatar Holding a $3bn (£2.2bn) loan for the purpose of directly or indirectly acquiring shares in Barclays thus violating the Companies Act 1985.
This is the second time Barclays has been called to task over its lifeline deal. The SFO initially brought criminal charges against the Barclays’ parent company and four former senior executives for the same offence on 20 June 2017.
At the time, Barclays was not sure whether the SFO would bring additional charges relating to the loan against Barclays Bank.
The parent company has also been charged with two counts of fraud by false representation in capital raisings in June and October of 2008.
Despite the news, shares in the British retail bank rose modestly on Monday and were trading 0.26% higher at 193p at the time of writing.
In a statement the firm said: “Barclays PLC and Barclays Bank PLC intend to defend the respective charges brought against them.
“Barclays does not expect there to be an impact on its ability to serve its customers and clients as a consequence of the Charge having been brought.”
