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
By CFOWorld staff | CFO UK | Published 11:23, 27 July 12
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.
Share:Facebook Twitter Google Plus Stumble Upon Reddit Share This Email this article
The role of the CFO and the board in strategic risk governancemore ..
The SFO joins a growing band of global regulators investigating the possible manipulation of forex marketsmore ..
Industry bodies like the Institute of Directors have questioned corporate governance practices at the FTSE 100 companymore ..
Vince Cable is talking to the Takeover Panel about how to "strengthen" government powers in takeover dealsmore ..
Examining how CFOs can improve the way they report back to the boardmore ..
Litigation funding is a very useful tool for CFOs but not a panacea for all legal mattersmore ..