Regulators review new Barclays evidence

City watchdogs are reviewing a fresh cache of evidence related to Barclays' involvement in the Libor interest rate scandal, it emerged last night.

The existence of the documents was revealed in court filings by Guardian Care Homes, which is suing Barclays, claiming the bank mis-sold it interest rate swap contracts that lost it millions. Some of the documents post-date the £290m settlement with watchdogs on both sides of the Atlantic over attempts by Barclays traders to manipulate dollar Libor interest rates.

The resulting scandal ultimately cost chief executive Bob Diamond his job. The evidence submitted, however, covers sterling Libor, which Guardian claims Barclays traders manipulated with the aim of generating profit for an investment fund.

Guardian wants to use this as part of its bid to invalidate Swap contracts with Barclays. Barclays has passed a number of documents over to regulators including Britain's Financial Conduct Authority in relation to Libor rates since the settlement. Sources said anything that might be of interest to them would be sent over.

A formal investigation would only follow if the regulator felt there was something sufficiently serious to warrant disciplinary action. It would also have to be novel and outside of the settlement. The bank argues that regardless of the Libor issue, Guardian was informed by experienced advisers.

Nonetheless, the case has important ramifications for the banking industry. If Guardian wins, other firms outside the scope of a mis-selling review for small businesses could launch actions of their own.

The Guardian chief executive Gary Hartland said: "My swaps have cost me £12m so the suggestion that these allegations are irrelevant is fanciful." He accused the bank of putting "its head in its hands" over the issue.

A Barclays spokesman said: "This started as an alleged mis-selling case which Barclays considers has no merit. The addition of a claim based on what happened with Libor does not change the Bank's view."

Barclays says it is owed £70m, and will take the case to trial if necessary.

* Europe's most powerful financial regulator has criticised George Osborne for attempting to water down one of the banking sector's most controversial reforms. Michel Barnier, once dubbed "the scourge of the City", warned that the UK is becoming "isolated" from the rest of Europe by objecting to a cap on bankers' bonuses. Mr Barnier, the European Union's Commissioner for Financial Services, said he regretted the Chancellor's decision to contest the policy in the European Court.

Start your day with The Independent, sign up for daily news emails
ebooks
ebooksAn introduction to the ground rules of British democracy
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
SPONSORED FEATURES
Independent Dating
and  

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

iJobs Job Widget
iJobs Money & Business

Recruitment Genius: Content Writer - Global Financial Services

£25000 - £30000 per annum: Recruitment Genius: From modest beginnings the comp...

Recruitment Genius: Web Developer - PHP

£35000 - £40000 per annum: Recruitment Genius: From modest beginnings the comp...

Recruitment Genius: Field Sales Consultant - Financial Services - OTE £65,000

£15000 - £65000 per annum: Recruitment Genius: This is an exciting opportunity...

Recruitment Genius: Loan Underwriter

£18000 - £20000 per annum: Recruitment Genius: This is a fantastic opportunity...

Day In a Page

A nap a day could save your life - and here's why

A nap a day could save your life

A midday nap is 'associated with reduced blood pressure'
If men are so obsessed by sex, why do they clam up when confronted with the grisly realities?

If men are so obsessed by sex...

...why do they clam up when confronted with the grisly realities?
The comedy titans of Avalon on their attempt to save BBC3

Jon Thoday and Richard Allen-Turner

The comedy titans of Avalon on their attempt to save BBC3
The bathing machine is back... but with a difference

Rolling in the deep

The bathing machine is back but with a difference
Part-privatised tests, new age limits, driverless cars: Tories plot motoring revolution

Conservatives plot a motoring revolution

Draft report reveals biggest reform to regulations since driving test introduced in 1935
The Silk Roads that trace civilisation: Long before the West rose to power, Asian pathways were connecting peoples and places

The Silk Roads that trace civilisation

Long before the West rose to power, Asian pathways were connecting peoples and places
House of Lords: Outcry as donors, fixers and MPs caught up in expenses scandal are ennobled

The honours that shame Britain

Outcry as donors, fixers and MPs caught up in expenses scandal are ennobled
When it comes to street harassment, we need to talk about race

'When it comes to street harassment, we need to talk about race'

Why are black men living the stereotypes and why are we letting them get away with it?
International Tap Festival: Forget Fred Astaire and Ginger Rogers - this dancing is improvised, spontaneous and rhythmic

International Tap Festival comes to the UK

Forget Fred Astaire and Ginger Rogers - this dancing is improvised, spontaneous and rhythmic
War with Isis: Is Turkey's buffer zone in Syria a matter of self-defence – or just anti-Kurd?

Turkey's buffer zone in Syria: self-defence – or just anti-Kurd?

Ankara accused of exacerbating racial division by allowing Turkmen minority to cross the border
Doris Lessing: Acclaimed novelist was kept under MI5 observation for 18 years, newly released papers show

'A subversive brothel keeper and Communist'

Acclaimed novelist Doris Lessing was kept under MI5 observation for 18 years, newly released papers show
Big Blue Live: BBC's Springwatch offshoot swaps back gardens for California's Monterey Bay

BBC heads to the Californian coast

The Big Blue Live crew is preparing for the first of three episodes on Sunday night, filming from boats, planes and an aquarium studio
Austin Bidwell: The Victorian fraudster who shook the Bank of England with the most daring forgery the world had known

Victorian fraudster who shook the Bank of England

Conman Austin Bidwell. was a heartless cad who carried out the most daring forgery the world had known
Car hacking scandal: Security designed to stop thieves hot-wiring almost every modern motor has been cracked

Car hacking scandal

Security designed to stop thieves hot-wiring almost every modern motor has been cracked
10 best placemats

Take your seat: 10 best placemats

Protect your table and dine in style with a bold new accessory