Barclays and four ex-bankers charged with 2008 fraud

Barclays shares hit as SFO court battle revealed

29 September

Barclays shares took a hit on Tuesday, as details of secret court hearings with the Serious Fraud Office and another probe by a global regulator into price-fixing were revealed.

The Financial Times reports that the bank is fighting a crown court application from the SFO for access to evidence relating to its £5.8bn "emergency cash call" at the height of the financial crisis in 2008.

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The watchdog "is probing allegations that the bank covertly lent Qatari investors money that they then used to participate in the cash call", which would breach listing rules.

The bank has said the evidence is legally privileged, meaning it could relate to legal advice given to the bank. Such correspondence remains confidential even during a criminal probe unless "it can be shown lawyers were also part of an alleged fraud".

A first hearing was held in July, but was subject to an injunction that was only lifted on Monday. A follow-up hearing is being held in December.

The FT suggests there is little chance the SFO will agree a US-style deferred prosecution agreement with the bank - which would include fines but halt criminal proceedings - as this requires "full" co-operation including "likely waiving privilege on key material", and this has not happened.

Elsewhere the Daily Mail says Barclays was named as one of seven banks, including fellow UK-based lender HSBC, to be named by the Swiss Competition Commission in relation to a probe into price fixing on certain commodity markets.

The regulator claims to have "evidence that banks 'possibly concluded illegal competition-defying deals' in the trade of precious metals". The investigation is expected to conclude in 2017 and could trigger big fines and wider action.

Barclays shares were down 1.8 per cent on Tuesday afternoon, well ahead of the 0.6 per cent decline on the FTSE-100. HSBC was down 0.6 per cent.

Barclays profit jump fails to quell thirst for cuts

29 July

Barclays interim boss John McFarlane has signalled he will target more savings to improve the bank's competitiveness, in spite of strong half-year results which showed a 25 per cent jump in profit.

The figures revealed a surge in unadjusted pre-tax profit at the group to £3.7bn for the six months to June. Barclays retail bank accounted for £1.5bn of this, up four per cent on the same period of 2014, while the investment banking unit which has been under pressure in recent months over poor performance saw profit soar 36 per cent to £1.4bn.

After taking account of various adjustments, the bank's pre-tax 'statutory' profit stood at £3.1bn. Included in these calculations is £1bn that has been set aside to compensate consumers for mis-selling of products such as payment protection insurance and packaged bank accounts, and £800m for ongoing legal actions relating to issues such as exchange rate manipulation.

The Times notes that the figures come just three weeks after McFarlane unceremoniously sacked previous chief executive Anthony Jenkins and took the reigns as executive chairman until a replacement is appointed. With the period covered coming during Jenkins' tenure, the paper says the results will "prompt questions about why he was ousted".

But while McFarlane praised the results he maintained his stringent tone and pledged to continue an ongoing cost cutting drive. This could mean seeking further job cuts on top of the 19,000 already scheduled to disappear by 2016, as previously reported by the Times, or closing more branches. Reuters points out that Barclays closed 98 branches in the year to June.

The Financial Times says the bank is targeting a fall in the cost-to-income ratio from around 70 per cent to the mid-50s. The paper explains that the current level, which means it spends £70 to achieve every £100 of revenue, puts it well behind US peers such as JPMorgan, Citigroup and Bank of America who boast ratios of 62 per cent or lower.

Video: reaction to Barclays' results

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Barclays: could bank be first to agree SFO deal?

22 July

Embattled banking group Barclays could become the first company to agree a 'deferred prosecution' deal with the Serious Fraud Office (SFO) under new powers handed to the agency last year, according to the latest reports.

Both the Financial Times and Sky News cite people "close" to the investigation confirming that an overture has been made by the SFO for the bank to enter into negotiations under a US-style deferred prosecution arrangement. This represents an attempt to bring an end to a long-running investigation over the bank's capital raising with Qatari investors in 2008.

The bank has said only that no DPA offer has been formally made. According to the FT, "discussions are at a very early stage and no offer is on the table".

Powers to agree DPAs were handed to the SFO in February of last year but have yet to be used. According to The Guardian the agency, which has faced criticism over botched investigations including the high-profile collapse of its case against property tycoon Vincent Tchenguiz that led to it paying out £3m in damages, has sent a number of 'invitations' to firms to open negotiations.

Any deal would require Barclays to admit to wrongdoing in a case that includes allegations it manipulated markets by making false statements and propped up shares by paying investors to participate in capital raising. The bank would probably face fines and restitution payments, but in return any criminal investigation would be deferred.

Barclays is already contesting a fine of £50m from the Financial Conduct Authority over the capital raising and in particular over £322m in fees paid to Qatari Holdings over five years, which the regulator says were not fully disclosed.

The bank reports its half-year earnings next week and investors will watch for developments in the case. The results will also be watched for any news on redundancies after reports claimed a further 30,000 jobs could be set to go in a fresh cost-cutting drive.

Barclays jobs cull report lifts share price

21 July

Barclays's share price has surged to an 18-month high on the back of a report in The Times that executive chairman John McFarlane could be about to announce tens of thousands of job cuts in a bid to reduce costs and boost returns to investors.

The paper said yesterday that the bank, which is currently being led by McFarlane following the sacking of Antony Jenkins this month, is considering cutting 30,000 jobs over the next two-years to get global headcount below 100,000 and turn around persistently underwhelming performance.

Cuts are likely to be particularly heavy in the retail bank where new technology is being introduced to improve efficiency. The investment bank, which has fallen from grace since the financial crisis and is now the worst performer in the group – with a return on investment of just 2.7 per cent – is also unlikely to be spared.

The Daily Telegraph says the cuts would be an extension of a redundancy programme announced last year to reduce headcount by 19,000 by 2016, with 7,000 job cuts coming from the investment bank. It suggests that around 10,000 job losses are still needed to meet that target, implying a total reduction of 39,000 by 2017.

However, the paper adds that insiders reckon the plans for automation are ambitious and that the cuts, aimed at reducing costs from around £18bn currently to £14.5bn, will not be achieved. Reuters reports that sources within the bank had said no new targets for redundancies had been set ahead of a trading update announcement next week.

Investors were undeterred. Building on gains following the announcement of Jenkins's departure, shares closed up and continue to trade at highs not seen since January 2014. In morning trading on Tuesday they were again up 0.8 per cent at 281.65 pence.

Antony Jenkins: Barclays fires its chief executive

8 July

Barclays has sacked chief executive Antony Jenkins after he fell out with the board over the pace of the bank's cost cutting.

Barclays deputy chairman Sir Michael Rake said he had "reflected long and hard on the issue of group leadership", the BBC reports, and concluded that a "new set of skills" was required at the head of the lender.

Jenkins was appointed as chief executive in August 2012, after the previous boss, Bob Diamond, resigned. The lender said the search for his successor is under way.

The Financial Times speculates that one potential replacement is Tushar Morzaria, who has impressed investors since he was hired as chief financial officer from JPMorgan two years ago. In the meantime, chairman John McFarlane has been named executive chairman until the new chief executive is found.

In a statement, the bank paid tribute to the departed boss. It said: "The Board recognises the contribution made by Antony Jenkins as chief executive over the past three years in incredibly difficult circumstances for the group, and is extremely grateful to him in bringing the company to a much stronger position."

The BBC's business editor Kamal Ahmed said several board members were unhappy with the speed of change at the bank.

Sky's business presenter Ian King said it was clear that Jenkins' mission was to "effect a fast turnaround at the bank". A perceived lack of urgency "seems to have been what sealed [his] fate."