We use cookies to provide you with a better experience. If you continue to use this site, we'll assume you're happy with this. Alternatively, click here to find out how to manage these cookies

hide cookie message
RSS FeedGovernance

Barclays FD Chris Lucas under investigation by FSA

The bank said on Friday that the FD and three others were under investigation over fees disclosures

Article comments

Barclays finance director Chris Lucas is one of four current and former senior executives under investigation by the financial regulator over disclosures of fees it paid under commercial agreements.

Barclays confirmed the new regulatory investigation and more US lawsuits on Friday as it released its half yearly results showing a forecast-beating £4 billion profit.

The revelations will make it more difficult for the bank to repair the damage to its reputation caused by its role in the interest rate-rigging scandal engulfing the bank and others.

The bank said its performance during July was ahead of last year and there has been no exodus of clients.

Barclays shares were up 4.8 percent to 161 pence by 10:59 a.m. British time, outperforming a 0.2 percent fall by the European bank index.

The bank said on Friday that the Financial Services Authority has started an investigation involving the bank and four current and former senior employees, including FD Chris Lucas.

The FSA is investigating whether the bank made sufficient disclosures about the fees it paid under commercial agreements related to its capital raisings in June and November 2008. The bank said it is satisfied with its disclosures, but refused further comment.

It also faces more US lawsuits after a record £290 million fine last month for rigging the Libor interest rate benchmark, sparking fierce criticism about its culture and risk-taking.

More than a dozen other banks are expected to be drawn into the global Libor investigation and could also be fined.

"We are sorry for the issues that have emerged over recent weeks and recognise that we have disappointed our customers and shareholders," chairman Marcus Agius said on Friday.

"I am confident we can, and will, repair the reputational damage done to our business in their eyes and those of all our stakeholders," Agius said, reaffirming a commitment to deliver a return on equity of 13 percent.

Barclays is searching for a new chief executive and chairman after they quit following the Libor scandal.

Agius said the board was focused on filling those positions, but gave no update on likely timing. Investors are keen for one or both of the CEO or chairman to come from outside, to be able to implement a far-reaching overhaul.


Recommended Articles


Barclays FD Chris Lucas under investigation by FSA

What’s going to kill your company?

What’s going to kill your company?

The role of the CFO and the board in strategic risk governancemore ..

Tesco’s new finance chief starts two months early amid accounting crisis

Marks and Spencer releases Alan Stewart early by to help deal with £250 million hole in Tesco’s accountsmore ..

Microsoft removes Bing image widget after Getty lawsuit

The company is being sued by Getty Images for copyright infringementmore ..

Apple loses bid for sales ban in Samsung patent case

Apple failed to show that it suffered enough harm as a result of Samsung's infringementmore ..

What makes a good board report?

Examining how CFOs can improve the way they report back to the boardmore ..

Examining the issue of corporate litigation funding

Litigation funding is a very useful tool for CFOs but not a panacea for all legal mattersmore ..

Send to a friend

Email this article to a friend or colleague:

PLEASE NOTE: Your name is used only to let the recipient know who sent the story, and in case of transmission error. Both your name and the recipient's name and address will not be used for any other purpose.

In Depth
Can finance rise to the challenge of major transformation?

Can finance rise to the challenge of major transformation?

Outdated finance processes, systems and competencies leave too many questions unanswered more ..

In Depth
Interim CFO or consultant? The pros and cons

Interim CFO or consultant? The pros and cons

Ed Harding offers an insight into the life of an interim CFO and the advantages in driving transformation more ..


* *