Barclays will not face trial on charges relating to the emergency £6bn rescue package it secured from the state of Qatar at the height of the financial crisis, after the high court ruled in the bank’s favour.
The Serious Fraud Office (SFO) brought charges against the bank over the 2008 deal, which saved Barclays from having to request a UK government bailout like its rivals Royal Bank of Scotland and Lloyds. Barclays and four of its former executives, who are still facing prosecution, were charged in June 2017 with conspiracy to commit fraud and the provision of unlawful financial assistance.
The latter allegation related to a $3bn (£2.3bn) loan from Barclays to Qatar, which the UK’s anti-fraud agency said was then used to invest in the bank. The charges were the first in Britain to be brought against a bank and its former executives for their actions during the financial crisis.
Southwark crown court in London dismissed the charges earlier this year and on Friday, the high court ruled against the SFO’s attempt to have them reinstated. The decision means Barclays will avoid the prospect of a highly visible jury trial over its actions.
But charges remain open against former chief executive John Varley, Roger Jenkins, who ran the investment banking arm, Thomas Kalaris, former head of Barclays’ wealth division, and former European head of financial institutions Richard Boath. All four are expected to face trial in January.
Barclays secured a £6.1bn capital injection from Qatar in 2008 as the banking crisis spread around the world. This obviated the need for a bailout from the UK government.
In a statement to the stock market, Barclays said a review by the Financial Conduct Authority had been put on hold during the SFO’s investigation. The US Securities and Exchange Commission and department of justice were also investigating the same deals, Barclays said. The bank added that other authorities had also been kept informed of developments.
Barclays is also facing a civil claim, which it is defending, from financier Amanda Staveley’s PCP Capital Partners, over a capital injection she helped arrange from Abu Dhabi.
