Barclays June 2017 Fraud Charges
In June 2017 Barclays PLC (‘the Bank’) and four former senior executives from the
Bank were charged with fraud. It is the first time criminal charges related to the 2008
financial crisis have been brought against a bank in the UK
The charges relate to the actions of the Bank in raising additional capital during the
financial crisis. The additional capital came from a number of investors including the
state-owned inthment fund, Qatar Holdings, and allowed Barclays to retain its
independence at a time when two of its biggest UK rivals were bailed out by the
government.
You are a Financial Manager working for Barclays Bank You have been asked to
prepare a 1,500 word report on implications of the Qatar case for John McFarlane, the
Chairman of Barclays PLC.
Prepare a 1,500 word report covering the following areas:
-a) Outline the main features of the 2008 financial crisis and explain its implications for
the UK banking sector-
-b) Explain why Barclays needed to raise additional capital in 2008-
-c) Explain why the Serious Fraud Office consider that the actions taken by the Bank
and its executives at that time may have been unlawful-
d)Based on your analysis, set out a clear recommendation as to one specific action the
Bank should take to prevent this happening again.