Catenaa, Tuesday, November 26, 2024- Barclays has agreed to pay a £40 million ($51 million) fine imposed by Britain’s Financial Conduct Authority (FCA) over its failure to disclose payments made to Qatari entities during the 2008 financial crisis, reports said yesterday.
The bank announced Monday it had withdrawn its appeal, seeking to end the 16-year-old case while maintaining it did not accept the regulator’s findings.
The penalty stems from Barclays’ efforts to secure funds from Qatar and other overseas investors to avoid a government bailout during the global financial crisis. The FCA concluded in 2022 that the bank’s conduct in the capital-raising effort was reckless and lacked integrity, accusing it of failing to provide full transparency about fees paid to Qatari investors.
Barclays stated that it was withdrawing its appeal due to the time elapsed and that the decision was in the best interests of shareholders and stakeholders. It emphasized there would be no material financial impact from the fine and that the organization has undergone significant changes since the events.
FCA said that Barclays’ misconduct was serious and meant investors did not have all the information they should have had.
However, the FCA acknowledged the bank’s progress in implementing organizational reforms.
The case had been set for a court hearing Monday, where former Barclays CEO John Varley was expected to testify.
The FCA initially fined the bank £50 million in 2022, but Barclays’ appeal delayed final resolution.
