Barclays Could Face Extra £1.2bn in Fines
Earlier in the year, we did a piece on Barclays mis-leading their customers and giving an unfair edge to high speed traders and how a lawsuit resulted in a fall in the bank’s “dark pool trading” venue of 79%.
It’s come to light that they could be facing up to £1.2 billion extra in legal costs and fines as they’re battling to settle the investigation which was started against them by the New York Attorney general.
Rise in Fines
This has all come about after Barclays PPI bill hit a staggering £5 billion to cover the costs of the PPI that they’ve been mis-selling.
In the second quarter of this year, the bank has already set aside more than £1.2 billion, £900 million for mis-sold PPI and the rest to cover other “legacy” matters. With the dark pool investigation still on-going, an analyst at Sanford C Bernstein has stated that they may need to start looking at setting aside yet more money to cover continuing costs.
In order to settle the fraud allegations that they’re facing relating to the “dark pool trading”, they are looking at having to pay up to £200m. This is the same case that we brought to you earlier in the year with claims that the bank was taking part in a “flagrant pattern of fraud, deception and dishonesty with Barclays clients as well as the investing public”.
On top of this, they are faced with a potential £700m charge to deal with the fallout from an industry wide investigation into the manipulation of the currency trading market which saw as much as $5.3 trillion traded every single day.
They could also be facing a £300m charge in the coming months. This is to compensate customers who were mis-sold products that were meant to help them hedge interest rates. In the midst of all these possible fines, the Barclays’ chief executive, Antony Jenkins has come out and said that they’re working hard to settle all outstanding legal issues and to put all of this behind them.
One thing that won’t be going away any time soon for Barclays is the PPI mis-selling scandal. Payment protection insurance was widely mis-sold by all of the banks, not just Barclays. If you think you have a PPI claim, you can download one of our PPI claim forms here and send it back to us and we’ll start your claim immediately.