Barclays and former bosses face criminal charges over financial crisis

SKY NEWS

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Barclays and four former top executives are facing criminal charges over its emergency fundraising at the height of the financial crisis.

The charges centre on investments secured from Qatari investors in 2008 as the banking sector went into meltdown.

Barclays is the first bank to face criminal charges over actions taken during the crisis.

The four men charged - including its former chief executive John Varley - are the most senior bankers to be charged in Britain for alleged crimes during the crisis.

They face jail sentences of up to 10 years if found guilty.

John Varley was chief executive of Barclays at the time of the fundraising

After a five-year investigation, the Serious Fraud Office (SFO) announced on Tuesday that Barclays has been charged with two counts of conspiracy to commit fraud and the provision of unlawful financial assistance.

The charges relate to the bank's move to raise cash from Qatar Holding and Challenger Universal in June and October 2008. They also relate to a $3bn (£2.4bn) loan made available to the State of Qatar in November of that year.

Varley and another senior executive Roger Jenkins have been with conspiracy to commit fraud by false representation in relation to a first round of investment in June 2008.

Varley and Jenkins have also been charged with another count in regard to a second capital raising in October 2008.

They are also facing a charge of unlawful financial assistance.

Roger Jenkins left Barclays in 2009

Two other men in senior roles at the bank in 2008 - Thomas Kalaris and Richard Boath - both face a single charge of conspiracy to commit fraud by false representation in relation to the June 2008 fundraising only.

Varley, who was Barclays chief executive between 2004 and 2011, headed the bank at the time of the deals, while Jenkins, who left the bank in 2009, was investment banking chief.

Kalaris - an American banker living in London - was formerly in charge of the bank's wealth and investment management division, while Boath was the former European head of financial institutions group at Barclays.

The defendants are due to appear at Westminster Magistrates' Court on 3 July.

A lawyer for Jenkins said he would "vigorously defend" himself against the charges, saying his client had received both internal and external legal advice at the time.

A spokesman for Boath declined to comment. A lawyer representing Varley declined to comment and a lawyer for Kalaris could not immediately be reached for comment.

Thomas Kalaris formerly ran Barclays Wealth

The bank said in response that it was "considering its position in relation to these developments" and is awaiting further information about the charges from the SFO.

It added that the City watchdog, the Financial Conduct Authority, had reopened its investigation while US authorities were continuing their own inquiries.

Barclays also reaffirmed it was defending a civil claim against it, brought by PCP Capital Partners and PCP International Finance, in relation to the second capital raising.

The charges will come as a further headache for current Barclays boss Jes Staley. He has faced a series of blows recently including a regulatory investigation into his own conduct over the handling of concerns raised by a whistle-blower.

(SKY NEWS)