Barclays is subject of two fresh US investigations

 

Barclays' already-tarnished reputation faced further damage today as the bank admitted it was the subject of two fresh US investigations.

In light of inquiries by UK authorities into payments between the bank and Qatari investors, Barclays said the US Department of Justice had also launched its own probe.

In addition, the US Federal Energy Regulatory Commission (Ferc) has warned Barclays it faces another fine following an investigation into power trading between 2006 and 2008.

Barclays, still reeling from a series of scandals including the Libor-fixing affair and the mis-selling of payment protection insurance (PPI), saw shares drop more than 3%.

Richard Hunter, head of equities at Hargreaves Lansdown Stockbrokers, said: "The spectre of more damage to the bank's reputation in the form of further regulatory probes is weighing heavily on the shares."

The fresh inquiries were revealed as new Barclays boss Antony Jenkins insisted the bank was in good shape despite sliding to a £47 million loss in its third quarter.

The loss was driven by a £700 million hit to cover mis-sold PPI claims and a one-off £1 billion charge against the value of the bank's own credit.

Delivering his first set of results since taking over from Bob Diamond in the wake of the Libor-fixing affair, Mr Jenkins said the lender had "much to do to restore trust among stakeholders" but remained "strong and well-positioned".

The Financial Services Authority and Serious Fraud Office launched investigations in July and August respectively into payments made between Barclays and Qatar Holding.

The bank raised billions of pounds from Middle East investors in 2008, which effectively allowed it to avoid a state bailout, like Lloyds or Royal Bank of Scotland.

Meanwhile, Ferc alleges that Barclays bought and sold electricity in enough volume to move exchange prices up or down to benefit the lender's positions.

Barclays, which is expecting a fine from the US regulator imminently, said it intends to "vigorously" defend this matter.

Stripping out the impact of the PPI charge, the bank reported underlying pre-tax profits for the third quarter of £1.7 billion, compared with £1.3 billion last year.

The investment bank - the powerhouse built by Mr Diamond - more than doubled its third quarter underlying pre-tax profits to £937 million, while UK retail banking slipped 19% year-on-year to £400 million in the same period.

Barclays reduced bad-debt charges by 19% year on year to £825 million in the third quarter, while its exposure to the troubled eurozone economies of Spain, Italy, Portugal, Ireland, Greece and Cyprus fell by 15% to £4.8 billion.

Barclays has endured one of the most turbulent periods in its history after it was fined £290 million by UK and US regulators for manipulating Libor, the interbank lending rate which affects mortgages and loans.

Marcus Agius will be replaced as chairman of the bank by Sir David Walker from tomorrow.

The bank is also in the midst of conducting its own internal investigation into the recent events.

As well as the Libor affair, the bank has faced mounting costs for mis-sold PPI and complex interest rate swap arrangements.

David Hillman, spokesman for the anti-poverty Robin Hood Tax campaign, said: "It's groundhog day at Barclays - knee-deep in scandals for ripping off the public, their casino bankers continue to pocket bumper profits and pay.

"Britain's Wild West banks will be coining it in for eternity unless the Government intervenes and ensures they pay for the wider economic damage they have caused."

PA

Sport
The Pipes and Drums of The Scottish Regiments perform during the Opening Ceremony for the Glasgow 2014 Commonwealth Games at Celtic Park on July 23, 2014 in Glasgow, Scotland.
Commonwealth gamesThe actor encouraged the one billion viewers of the event to donate to the children's charity
Sport
Members of the Scotland deleagtion walk past during the opening ceremony of the 2014 Commonwealth Games at Celtic Park in Glasgow on July 23, 2014.
Voices
voicesGood for Lana Del Rey for helping kill that myth, writes Grace Dent
Sport
Shinji Kagawa and Reece James celebrate after the latter scores in Manchester United's 7-0 victory over LA Galaxy
football
PROMOTED VIDEO
Have you tried new the Independent Digital Edition apps?
News
ebookA unique anthology of reporting and analysis of a crucial period of history
Arts and Entertainment
The Tour de France peloton rides over a bridge on the Grinton Moor, Yorkshire, earlier this month
film
Life and Style
fashion Designs are part of feminist art project by a British student
News
Very tasty: Vladimir Putin dining alone, perhaps sensibly
news
Life and Style
Listen here: Apple EarPods offer an alternative
techAre custom, 3D printed earbuds the solution?
Arts and Entertainment
Top guns: Cole advised the makers of Second World War film Fury, starring Brad Pitt
filmLt-Col Steven Cole is the man Hollywood calls when it wants to borrow a tank or check a uniform
News
The University of California study monitored the reaction of 36 dogs
sciencePets' range of emotions revealed
News
Snoop Dogg pictured at The Hollywood Reporter Nominees' Night in February, 2013
people... says Snoop Dogg
Arts and Entertainment
A scene from Shakespeare in Love at the Noel Coward Theatre
theatreReview: Shakespeare in Love has moments of sheer stage poetry mixed with effervescent fun
News
Joining forces: young British men feature in an Isis video in which they urge Islamists in the West to join them in Iraq and Syria
newsWill the young Britons fighting in Syria be allowed to return home and resume their lives?
Arts and Entertainment
The nomination of 'The Wake' by Paul Kingsnorth has caused a stir
books
News
i100
Life and Style
food + drinkZebra meat is exotic and lean - but does it taste good?
Independent
Travel Shop
the manor
Up to 70% off luxury travel
on city breaks Find out more
santorini
Up to 70% off luxury travel
on chic beach resorts Find out more
sardina foodie
Up to 70% off luxury travel
on country retreats Find out more
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 General

BI Manager - £50,000

£49000 - £55000 per annum + competitive: Progressive Recruitment: My client is...

BI Project Manager - £48,000 - £54,000 - Midlands

£48000 - £54000 per annum + Benefits package: Progressive Recruitment: My clie...

VB.Net Developer

£35000 - £45000 per annum + competitive: Progressive Recruitment: If you're pa...

SAP Business Consultant (SD, MM and FICO), £55,000, Wakefield

£45000 - £55000 per annum + competitive: Progressive Recruitment: SAP Business...

Day In a Page

Screwing your way to the top? Good for Lana Del Rey for helping kill that myth

Screwing your way to the top?

Good for Lana Del Rey for helping kill that myth, says Grace Dent
Will the young Britons fighting in Syria be allowed to return home and resume their lives?

Will Britons fighting in Syria be able to resume their lives?

Tony Blair's Terrorism Act 2006 has made it an offence to take part in military action abroad with a "political, ideological, religious or racial motive"
Beyoncé poses as Rosie the Riveter, the wartime poster girl who became a feminist pin-up

Beyoncé poses as Rosie the Riveter

The wartime poster girl became the ultimate American symbol of female empowerment
The quest to find the perfect pair of earphones: Are custom, 3D printed earbuds the solution?

The quest to find the perfect pair of earphones

Earphones don't fit properly, offer mediocre audio quality and can even be painful. So the quest to design the perfect pair is music to Seth Stevenson's ears
US Army's shooting star: Lt-Col Steven Cole is the man Hollywood calls when it wants to borrow a tank or check a military uniform

Meet the US Army's shooting star

Lt-Col Steven Cole is the man Hollywood calls when it wants to borrow a tank or check a military uniform
Climate change threatens to make the antarctic fur seal extinct

Take a good look while you can

How climate change could wipe out this seal
Should emergency hospital weddings be made easier for the terminally ill?

Farewell, my lovely

Should emergency hospital weddings be made easier?
Man Booker Prize 2014 longlist: Crowdfunded novel nominated for first time

Crowdfunded novel nominated for Booker Prize

Paul Kingsnorth's 'The Wake' is in contention for the prestigious award
Vladimir Putin employs a full-time food taster to ensure his meals aren't poisoned

Vladimir Putin employs a full-time food taster

John Walsh salutes those brave souls who have, throughout history, put their knives on the line
Tour de France effect brings Hollywood blockbusters to Yorkshire

Tour de France effect brings Hollywood blockbusters to Yorkshire

A $25m thriller starring Sam Worthington to be made in God's Own Country
Will The Minerva Project - the first 'elite' American university to be launched in a century - change the face of higher learning?

Will The Minerva Project change the face of higher learning?

The university has no lecture halls, no debating societies, no sports teams and no fraternities. Instead, the 33 students who have made the cut at Minerva, will travel the world and change the face of higher learning
The 10 best pedicure products

Feet treat: 10 best pedicure products

Bags packed and all prepped for holidays, but feet in a state? Get them flip-flop-ready with our pick of the items for a DIY treatment
Commonwealth Games 2014: Great Scots! Planes and pipers welcome in Glasgow's Games

Commonwealth Games 2014

Great Scots! Planes and pipers welcome in Glasgow's Games
Jack Pitt-Brooke: Manchester City and Patrick Vieira make the right stand on racism

Jack Pitt-Brooke

Manchester City and Patrick Vieira make the right stand on racism
How Terry Newton tragedy made iron men seek help to tackle their psychological demons

How Newton tragedy made iron men seek help to tackle their psychological demons

Over a hundred rugby league players have contacted clinic to deal with mental challenges of game