Barclays bill for rigging passes £2bn

29 April 2015

barclays_bank_limited Barclays part in the manipulation of foreign exchange rates is still hanging over the bank, and they've yet to settle - unlike the other institutions who have been implicated - with the Financial Conduct Authority or American authorities.

This means they're looking at a massive, massive bill. Barclays have put aside another £800m, which takes the bank's total bill for the scandal in excess of £2bn. Other banks, such as RBS and HSBC have already been hit with fines worth billions.

This week, Barclays had to set aside a further £150m for PPI compensation.

Chief executive Antony Jenkins said: "Resolving legacy conduct issues is also an important part of our plan to transform Barclays. We are working hard to expedite their settlement and have taken further provisions of £800m this quarter, primarily relating to foreign exchange."

What will stick in the craw of the lender is that they've actually been performing reasonably well. If you take away all the money they've put away for previous offences, they'd be making a decent profit.

If you adjust the profits by taking out their forex and PPI bills, they will have seen a rise of 9% to £1.85bn, which is just ahead of forecasts.

Jenkins added: "This further demonstrates that the Transform strategy is working and, while there is more to do, the business is starting to realise its potential."

TOPICS:   Banking   Government

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