Serious Fraud Office presses case to get criminal charges reinstated against Barclays over 2008 cash call
The Serious Fraud Office is pressing its case for criminal charges to be reinstated against Barclays in the High Court over its £11.8bn emergency fundraising at the height of the financial crisis.
Two charges of conspiracy to commit fraud against the bank were dismissed by a more junior court in May, in a blow to the SFO which has spent more than five years on the investigation.
The fraud watchdog applied to reinstate the charges over the summer and arguments will be heard on whether it has a valid indictment in the High Court this week.
Barclays has previously said it intends to defend the application brought by the SFO.
The 2008 cash call, largely bankrolled by Qatar, helped Barclays avoid a state bail-out, unlike rivals RBS and Lloyds.
However, side deals struck between the bank and the wealthy Gulf state related to the fundraising have been the subject of scrutiny.
The basis of the court’s decision to originally dismiss the charges against Barclays, including two of unlawful financial assistance, was not disclosed.
It was seen as a set-back for the SFO, with legal experts calling it a "punch in the gut" for the fraud agency.
Charges against four former directors of Barclays - including its ex-chief executive John Varley - for conspiracy to commit fraud related to the fundraising remain live, with their trial scheduled to be heard in January.
Former senior investment banker Roger Jenkins, the former boss of Barclays’ wealth division Thomas Kalaris, and the ex-European head of financial institutions Richard Boath have also been charged along with Mr Varley for conspiracy to commit fraud by false representation for the June 2008 cash call.
Mr Varley and Mr Jenkins also face separate charges of conspiracy to commit fraud related to a second capital raising in October that year, as well as a charge of unlawful financial assistance.
The men deny all the charges.
Barclays is also facing a separate $1bn (£770m) civil lawsuit over its dealings with Qatar, brought by financier Amanda Staveley’s PCP Capital Partners. This case has been stayed pending the outcome of the criminal case.
