Barclays Bank publicly announced that it had incurred an income loss of £500 million in the third quarter surprisingly for the same period a year earlier despite contentions that the bank was uptight and cautious of its economic outlook since the start of the fiscal year.
The bank is also expected to be fined £50 million for breaching the listed rules when it raised new capitals. The said disclosure by Barclay’s catalogue over its £5.8 billion rights issue, is surprisingly similar to the 2008 fundraising activities with Qatari investors which is recently under strict scrutiny by the US and the UK authorities over alleged questionable payments alongside the cash call it disbursed.
According to reliable sources and insiders that are close to the fundraising process, Barclays has irrefutably snot been able to reach a formal settlement with the Financial Conduct Authority (FCA) which resulted in the UK’s decisive move to commence the regulatory inquiry into the bank’s dealings with its clients and investors primarily based in Qatar.
This controversial news and turn of events was deemed unwelcome by Barclays incumbent chief executive Anthony Jenkins, who in recent times had comprehensively raised fresh capital for the bank he previously thought he no longer need to put more pressure after the stress from the Bank of England’s Prudential Regulation Authority had started to inquire over the bank’s present predisposition.
Barclays, in one of its press release comments stated that it will continue its cautious approach regarding the environment in which it actively operates its business as well as focusing more on the costs, leverage, capital and returns with high optimism to maintain a sustainable performance and further improvement in the future.