Barclays has been accused of acting with "reckless disregard" when it sold a set of complex derivatives to a care home operator that is suing the bank for £36m. The claims against Barclays are in an independent report prepared for Guardian Care Homes [GCH], which operates a 30-strong chain of homes, by derivatives experts at JC Rathbone Associates. In the report, which was paid for by the company and will form a central part of GCH's case, the bank is accused of selling derivatives where the advantages were "outweighed by the risk of incurring significant termination costs". News of the report is the latest blow to UK banks following the Telegraph's investigation into the alleged mis-selling of interest rate derivatives. The report alleges that the terms of the loan posed "a risk of breach of covenant" while also claiming that the hedges sold to GCH were never likely to have protected it against rising interest rates. Sources close to Barclays have countered that GCH received advice from investment bank Rothschild before taking out the hedges and was experienced in complex financial products in its own right. The company has denied this was the case and said Rothschild was only advising it on a potential stock market flotation....Read more here