Former Barclays bosses face criminal charges

The emergency funds raised by Barclays at the height of the financial crisis allowed it to avoid a government bailout when its rivals – Lloyds and Royal Bank of Scotland – took state rescue packages.

After a five-year investigation, the Serious Fraud Office (SFO) has announced Barclays has been charged with two counts of conspiracy to commit fraud and the provision of unlawful financial assistance.

The charges centre on the bank’s move to raise cash from Qatari investors Qatar Holding and Challenger Universal in June and October 2008. They also relate to a $3bn (£2.4bn) loan made available to the State of Qatar in November of that year.

The bank’s former chief executive John Varley and another senior executive Roger Jenkins have been with conspiracy to commit fraud by false representation in relation to a first round of investment in June 2008.

Varley and Jenkins have also been charged with another count in regard to a second capital raising in October 2008.

They are also facing a charge of unlawful financial assistance.

Two other men in senior roles at the bank in 2008 – Thomas Kalaris and Richard Boath – both face a single charge of conspiracy to commit fraud by false representation in relation to the June 2008 fundraising only.

Mr Varley, who was Barclays chief executive between 2004 and 2011, headed the bank at the time of the deals, while Mr Jenkins, who left the bank in 2009, was investment banking chief.

Mr Kalaris – an American banker living in London – was formerly in charge of the bank’s wealth and investment management division, while Mr Boath was the former European head of financial institutions group at Barclays.

The defendants are due to appear at Westminster Magistrates’ Court on 3 July.

The bank said in response that it was “considering its position in relation to these developments” and it had been informed by the SFO that it had not made a decision on whether to also bring charges against it in respect of the loan.

It added that the City watchdog, the Financial Conduct Authority (FCA), had reopened its investigation while US authorities were continuing their own inquiries.

Barclays also reaffirmed it was defending a civil claim against it, brought by PCP Capital Partners and PCP International Finance, in relation to the second capital raising.

The charges will come as a further headache for current Barclays boss Jes Staley. He has faced a series of blows recelently including a regulatory investigation into his own conduct after he attempted to identify a whistle-blower. news.sky.com