The UK's financial watchdog fined Barclays £40 million for conduct during a 2008 fundraising campaign, which it described as “reckless” and lacking in due diligence. 'integrity.
The Financial Conduct Authority (FCA) says the bank failed to disclose its deals with Qatari investors as it sought to raise funds at the height of the financial crisis.
Barclays was due to challenge the regulator's case in court this week.
Although the bank said it did not agree with the FCA's findings, it decided to abandon the appeal, adding that it wanted to “draw a line” on the matter.
The FCA had already discovered in 2022 that the bank had paid hundreds of millions of pounds in fees to some Qatari investors to bring in new capital.
She said Barclays had failed to inform the market or shareholders of these matters as it should have done.
At the time, this giant fundraising exercise allowed Barclays to avoid having to be rescued by the government, unlike competitors such as Royal Bank of Scotland or Lloyds.
After the collapse of Lehman Brothers in the United States in 2008, the entire financial system was in danger.
Barclays' fundraising efforts have come under scrutiny not only from regulators, but also the general public, as it faced legal challenges.
The bank was seeking to raise billions of pounds from sovereign wealth funds in China, Japan, Singapore and the Middle East, although the FCA also claimed it failed to reveal it was paying higher fees to Qatari organizations.
For example, the bank paid a Qatari entity some £322 million in fees for its participation over several years.
The Serious Fraud Office had claimed these were undisclosed additional fees demanded by the Qataris, paid as part of side deals for what were described as consultancy services.
But three former senior Barclays executives were acquitted after becoming the first bankers to face a jury over criminal allegations centered on the 2008 crisis.
Charges against Barclays were also dropped before this trial.
The FCA has reduced the £50 million fine it initially imposed in 2022.
Steve Smart, co-executive director of enforcement and market surveillance at the FCA, said: “Barclays' misconduct was serious and meant investors did not have all the information they should have had. .
“However, the events took place over 16 years ago and we recognize that Barclays is a very different organization today, having implemented changes across the business.
“It is important that listed companies provide investors with the information they need.”
A Barclays spokesperson said that “in view of the time that has passed since the events, Barclays wishes to draw a line under the issues” raised by the FCA.
“Barclays does not accept the findings of the decision notices and this has been acknowledged by the FCA,” they said.
“Despite the divergence of views, Barclays concluded that the interests of the bank, its shareholders and other stakeholders would be better served by removing the references.”
