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The leaders of the British banking group Barclays have lied about the payment of 322 million pounds of secret commissions in Qatar to keep the bank afloat in the chaos of the global financial crisis of 2008, announced a court Wednesday.
Executives, including former CEO John Varley, would have come up with a fraudulent plan to pay Qatar higher than usual fees in return for investments of nearly £ 4 billion. for the bank affected by the crisis.
Barclays hid details of payments of $ 42 million and £ 280 million in "false and misleading" financial statements that concealed the nature of the relationship between the two parties, told the Southwark Crown Court the opening of A trial for fraud of four key executives.
The court learned that Qatar had entered into a difficult market with a view to obtaining generous loan terms during the months of talks in 2008.
Qatar Holding – part of the sovereign wealth fund – secured commissions at rates more than double what any other investor had been promised.
But the leaders accepted the charges because they wanted to avoid the same fate as the rival British lenders, the Royal Bank of Scotland and Lloyds, who were saved by the British government.
The move would have taken Barclays – which can go back to 1690 – on private hands.
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Leaders sought to conceal the extent of capitulation in financial documents sent to markets in order to avoid being "weak and vulnerable".
A jury would have been informed if they had shown the true position, they would have been forced to pay similar amounts to other investors.
"It is no exaggeration to say that the future of Barclays as an independent bank was in jeopardy in September and October 2008," said Edward Brown, Serious Fraud Office Attorney.
Barclays raised more than £ 11 billion in emergency funds from international investors as global markets plummeted in 2008.
"Qatari money was essential and bank members at the time pointed out that otherwise the consequences would be disastrous – for the bank and personally," he said.
"The position presented was that the Qataris were paid the same commission rate as any other investor … it was not true, says the Crown, and the conspirators knew that it was a lie."
Four former leaders, including Mr. Varley, appeared in court on Wednesday accused of conspiracy to commit fraud by deception
These are the top bankers to have been tried by criminal charges in Britain following the global financial crisis of 2008/2009 that paralyzed the banking sector.
Mr. Varley, 62, was joined by Roger Jenkins, 63, former head of investment banking at Barclays in the Middle East.
Thomas Kalaris, 63, former head of its wealth management division, and Roger Boath, 60, former European division chief, are also charged with conspiracy to defraud.
The four men deny the charges.
The trial is expected to last four months.
Last updated: January 23, 2019 4:17 pm
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