Barclays hit by fresh US investigations into corrupt practices
LONDON (REUTERS) - Barclays, already rocked by an interest rate rigging scandal, unveiled two new US regulatory investigations into its financial probity on Wednesday, adding its profit was hit by charges for mis-selling insurance.
Following investigations in Britain over its dealings with Qatari investors, Barclays said the Department of Justice and Securities and Exchange Commission were investigating whether its relationships with third parties who helped it win or retain business were compliant with the US Foreign Corrupt Practices Act.
The bank is currently under investigation by Britain's financial regulator and fraud prosecutor into payments to Qatari investors after it raised billions of pounds from the Gulf state five years ago to save it from taking a taxpayer bailout.
The Financial Services Authority (FSA) is investigating the bank and four current and senior employees, including finance director Chris Lucas, to determine whether it made adequate disclosure of the fees it paid in a 2008 capital raising.