Barclays struggles to escape Diamond's shadow

Two fresh inquiries into conduct are set to spark further fines, while third-quarter profits have been knocked by PPI mis-selling charge

Barclays has been rocked by two fresh inquiries into its conduct, leaving the bank facing millions of pounds in new fines.

The company, which has already been fined £290m this year for Libor rigging, said another fine could come as early as today from the US Federal Energy Commission, which has been investigating its western US power trading operations between 2006 and 2008.

Barclays said it would defend itself against any penalty "vigorously".

It also revealed that the investigation into money it paid to advisers to the Qatar sovereign wealth fund, when it raised extra capital in 2008, had widened.

This was already under investigation in London by the Serious Fraud Office and Financial Services Authority, and is now being looked at by the US Department of Justice and the Securities and Exchange Commission.

News of the investigations were revealed alongside the company's third-quarter results, where underlying profits rose from £1.34bn to £1.73bn in the three months to the end of September. That was before the extra £700m charge for mis-selling payment protection insurance announced only last week and a £1bn esoteric accounting charge for the change in value of the bank's own bonds. At the statutory level the bank lost £47m.

The investment bank, which Barclays' former chief executive Bob Diamond created, continues to be a star performer, with pre-tax profits more than double a year earlier at £937m.

Barclays' shares closed 11.3p, or nearly 5 per cent, lower at 227.5p with analysts saying that while the figures were in line with forecasts the new inquiries and cautious outlook weighed on investor sentiment.

The new chief executive Antony Jenkins admitted the third quarter had been difficult for the bank with the departure of his predecessor Mr Diamond over the Libor-rigging scandal and the exit of chairman Marcus Agius, who will be replaced by Sir David Walker today.

Earlier this week, a High Court judge said that Barclays would be forced to disclose the names of staff involved in Libor rigging.

The ruling was part of a case brought by Guardian Care Homes, which is suing Barclays for almost £40m over the alleged mis-selling of complex interest-rate swaps.

"While we have much to do to restore trust among stakeholders, our universal banking franchise remains strong and well positioned," Mr Jenkins said. "These numbers show continued momentum, despite significant headwinds. They demonstrate that we have remained proactive, for example in taking action to cut costs."

Mr Jenkins said he would reveal his strategy for the bank in February but for now he was looking at every part of the business to assess how well they would perform when the tighter Basel III regulations came into force. He said that he would sort the businesses into three categories: those which would continue to grow and be successful, those which needed modifying and those the bank should exit.

But following UBS's decision to quit fixed income yesterday Mr Jenkins said his investment bank was "certain to remain a very significant player" in that market.

Barclays also raised the prospect that it could sell bonds that convert into equity if its capital levels fell to dangerous levels.

Scandals and investigations: Heat is on bank

Libor

Barclays was fined a record £290m in June for manipulating the interbank lending rate, Libor, between 2005 and 2009. The scandal cost chief executive Bob Diamond and chairman Marcus Agius their jobs.

Qatar

Less than a month later, Barclays revealed it was being investigated by the Financial Services Authority over fees paid to Middle Eastern investors at the height of the financial crisis when it raised extra capital. This is being looked at by the United States Department of Justice and the Securities and Exchange Commission.

Energy

Barclays is facing an inquiry by the US Federal Energy Commission for allegedly manipulating energy prices in the US from 2006 until 2008.

Interest rate swaps and PPI

Earlier this month, Barclays set aside another £700m to cover the cost of mis-selling payment protection insurance, taking its bill to £2bn. It is also being sued by Guardian Care Homes for almost £40m over the alleged mis-selling of complex interest rate swaps.

Suggested Topics
Start your day with The Independent, sign up for daily news emails
Voices
Homeless Veterans charity auction: Cook with Angela Hartnett and Neil Borthwick at Merchants Tavern
charity appeal
Arts and Entertainment
Strictly finalists Simon Webbe, Caroline Flack, Mark Wright and Frankie Bridge
tvLive: Simon Webbe, Caroline Flack, Mark Wright and Frankie Bridgeface-off in the final
Life and Style
A still from the 1939 film version of Margaret Mitchell's 'Gone with the Wind'
life
Arts and Entertainment
British actor Idris Elba is also a DJ and rapper who played Ibiza last summer
film
PROMOTED VIDEO
ebooks
ebooksA year of political gossip, levity and intrigue from the sharpest pen in Westminster
Extras
The Tesco Hudl2: An exceptional Android tablet that's powerful, well-built and outstanding value
indybest

News
Sarah Silverman (middle) with sister Reform Rabbi Susan Silverman (right) and sister actress Laura Silverman (left) at Jerusalem's Western Wall for feminist Hanuka candle-lighting ceremony
peopleControversial comedian stages pro-equality Hanukkah lighting during a protest at Jerusalem's Wailing Wall
Sport
After another poor series in Sri Lanka, Alastair Cook claimed all players go through a lean period
cricket
News
i100
Arts and Entertainment
The Bach Choir has been crowned the inaugural winner of Sky Arts’ show The Great Culture Quiz
arts + ents140-year-old choir declared winner of Sky Arts' 'The Great Culture Quiz'
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Carlton Senior Appointments: Private Banking Manager - Intl Bank - Los Angeles

$200 - $350 per annum: Carlton Senior Appointments: Managing Producer – Office...

Carlton Senior Appointments: San Fran - Investment Advisor – Ind Advisory Firm

$125 - $225 per annum: Carlton Senior Appointments: San Fran - Investment Advi...

Sheridan Maine: Commercial Finance Manager

Up to £70,000 per annum + benefits: Sheridan Maine: Are you a qualified accoun...

Sheridan Maine: Regulatory Reporting Accountant

Up to £65,000 per annum + benefits: Sheridan Maine: Are you a qualified accoun...

Day In a Page

Homeless Veterans appeal: 'You look for someone who's an inspiration and try to be like them'

Homeless Veterans appeal

In 2010, Sgt Gary Jamieson stepped on an IED in Afghanistan and lost his legs and an arm. He reveals what, and who, helped him to make a remarkable recovery
Could cannabis oil reverse the effects of cancer?

Could cannabis oil reverse effects of cancer?

As a film following six patients receiving the controversial treatment is released, Kate Hilpern uncovers a very slippery issue
The Interview movie review: You can't see Seth Rogen and James Franco's Kim Jong Un assassination film, but you can read about it here

The Interview movie review

You can't see Seth Rogen and James Franco's Kim Jong Un assassination film, but you can read about it here
Serial mania has propelled podcasts into the cultural mainstream

How podcasts became mainstream

People have consumed gripping armchair investigation Serial with a relish typically reserved for box-set binges
Jesus Christ has become an unlikely pin-up for hipster marketing companies

Jesus Christ has become an unlikely pin-up

Kevin Lee Light, aka "Jesus", is the newest client of creative agency Mother while rival agency Anomaly has launched Sexy Jesus, depicting the Messiah in a series of Athena-style poses
Rosetta space mission voted most important scientific breakthrough of 2014

A memorable year for science – if not for mice

The most important scientific breakthroughs of 2014
Christmas cocktails to make you merry: From eggnog to Brown Betty and Rum Bumpo

Christmas cocktails to make you merry

Mulled wine is an essential seasonal treat. But now drinkers are rediscovering other traditional festive tipples. Angela Clutton raises a glass to Christmas cocktails
5 best activity trackers

Fitness technology: 5 best activity trackers

Up the ante in your regimen and change the habits of a lifetime with this wearable tech
Paul Scholes column: It's a little-known fact, but I have played one of the seven dwarves

Paul Scholes column

It's a little-known fact, but I have played one of the seven dwarves
Fifa's travelling circus once again steals limelight from real stars

Fifa's travelling circus once again steals limelight from real stars

Club World Cup kicked into the long grass by the continued farce surrounding Blatter, Garcia, Russia and Qatar
Frank Warren column: 2014 – boxing is back and winning new fans

Frank Warren: Boxing is back and winning new fans

2014 proves it's now one of sport's biggest hitters again
Jeb Bush vs Hillary Clinton: The power dynamics of the two first families

Jeb Bush vs Hillary Clinton

Karen Tumulty explores the power dynamics of the two first families
Stockholm is rivalling Silicon Valley with a hotbed of technology start-ups

Stockholm is rivalling Silicon Valley

The Swedish capital is home to two of the most popular video games in the world, as well as thousands of technology start-ups worth hundreds of millions of pounds – and it's all happened since 2009
Did Japanese workers really get their symbols mixed up and display Santa on a crucifix?

Crucified Santa: Urban myth refuses to die

The story goes that Japanese store workers created a life-size effigy of a smiling "Father Kurisumasu" attached to a facsimile of Our Lord's final instrument of torture
Jennifer Saunders and Kate Moss join David Walliams on set for TV adaptation of The Boy in the Dress

The Boy in the Dress: On set with the stars

Walliams' story about a boy who goes to school in a dress will be shown this Christmas