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The charge sheet against Barclays grew again today as the bank confirmed it was facing two new investigations by US authorities, while its compensation bill for mis-sold PPI grew again and forced profits lower. Barclays confirmed that it is being investigated by the US Department of Justice and US Securities and Exchange Commission into whether its relationships with third parties who assist Barclays to win or retain business are compliant with the United States Foreign Corrupt Practices Act. The bank is already under investigation by the Financial Services Authority (FSA) and Serious Fraud Office into payments to Qatar investors after the bank raised billions of pounds from them five years ago to save it from taking a taxpayer bailout. Barclays also said it is also being investigated by the US Federal Energy Regulatory Commission about the manipulation of power prices in the western United States from late 2006 until 2008. FERC could notify the bank of proposed penalties as early as Wednesday, it said. Barclays said it will 'vigorously' defend this matter. The latest two investigations take the number of scandals involving alleged malpractice at Barclays to five.
The come on top of the Libor manipulation scandal which led to Barclays being fined £290million by US and British authorities in June, and potential legal action over the sale of complex interest-rate swap products to business customers. Additionally, Barclays, in common with most other UK banks, is still paying the price for widespread mis-selling of payment protection insurance (PPI). Delivering his first set of results since taking over from Bob Diamond in the wake of the Libor-fixing affair, new boss Antony Jenkins said the lender had 'much to do to restore trust among stakeholders' but remained 'strong and well-positioned'. Barclays reported a statutory loss of £47million in the three months to September, compared with a £2.4billion profit in the same quarter last year.....Read more here: Barclays facing two US investigations while PPI claims force profits lower
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