Legal News

Barclays Bank Fights to Restore Its Reputation
Download PDF
1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet)
Loading...

Barclays Bank

Summary: Barclays Bank reveals challenges it faces to investors and defends itself against allegations in lawsuits worldwide.

The Guardian reports that a document recently sent to shareholders by Barclays exposes the extent of the legal problems facing the bank. The document addresses issues such as accusations of “ripping off its own clients,” “rigging interest rates,” and “court tussles.” Barclays is facing years of litigation and multimillion-pound payouts.

  
What
Where


Shareholders, who have already protested Barclays’ board’s decision to pay 2.4 billion pounds in bonuses while profits dwindled, will likely be even unhappier with the prospectus. Over 10 percent of the nearly 150 page document was dedicated to “risk factors”—rather, alleged wrongdoing on Barclays’ part. For example, Barclays and nine other banks were accused of manipulating Libor, which sets the cost of credit for borrowers worldwide. Several smaller lenders complained that the artificially low rates lowered their income. Barclays also faces accusations for manipulating equivalent rates for the euro and yen.

The trouble doesn’t end there: Barclays also detailed the $280 million settlement it paid to Fannie Mae and Freddie Mac, two American federal home finance companies, based upon allegations of “selling faulty-mortgage backed securities during the housing bubble.”

Barclays’ biggest challenge is defending itself against the allegation that Barclays took advantage of its customers in “dark pool,” which allowed investors to remain unknown until completion of the trade.

Get JD Journal in Your Mail

Subscribe to our FREE daily news alerts and get the latest updates on the most happening events in the legal, business, and celebrity world. You also get your daily dose of humor and entertainment!!




Nevertheless, Barclays has stated it did not expect the cases to have “a material impact,” affecting its profits negatively.

Image credit: Wikipedia





 

RELEVANT JOBS

Associate Attorney

USA-PA-Exton

ASSOCIATE ATTORNEY McKenna Snyder LLC, a law firm in Exton, PA has an immediate opening for an ex...

Apply now

Attorney

USA-MI-Sturgis

Qualifications: HaasCaywood is seeking associate attorneys for our Coldwater and Sturgis, Michiga...

Apply now

Attorney

USA-MI-Coldwater

Qualifications: HaasCaywood is seeking associate attorneys for our Coldwater and Sturgis, Michiga...

Apply now

Deputy General Counsel / Senior Deputy General Counsel

USA-CA-Sacramento

Cal Cities Culture and Mission Cal Cities is dedicated to creating a collaborative and inclusive ...

Apply now

BCG FEATURED JOB

Locations:

Keyword:



Search Now

Education Law Attorney

USA-CA-El Segundo

El Segundo office of a BCG Attorney Search Top Ranked Law Firm seeks an education law attorney with ...

Apply Now

Education Law Attorney

USA-CA-Carlsbad

Carlsbad office of a BCG Attorney Search Top Ranked Law Firm seeks an education law attorney with 4-...

Apply Now

Education Law and Public Entity Attorney

USA-CA-El Segundo

El Segundo office of a BCG Attorney Search Top Ranked Law Firm seeks an education law and public ent...

Apply Now

Most Popular

SEARCH IN ARCHIVE

To Top