Barclays PLC (LON:BARC) said today that it “is considering its position” after the Serious Fraud Office launched criminal charges against the bank for offences related to a £7.3bn emergency cash injection from Qatar in 2008 which staved off a UK government bail-out.
In a statement, the FTSE 100-listed firm said the SFO has charged it with two offences of conspiring with “certain former senior officers and employees of Barclays to commit fraud by false representations.”
READ: Something ironic in Barclays and its former boss being hit with first criminal charges related to financial crisis
The four former officers and employees of the bank also charged include John Varley, Barclays former chief executive. It was also announced today that Varley has resigned as the senior independent non-executive director at FTSE 100-listed miner Rio Tinto PLC.
In addition, the bank has been charged with one offence of “unlawful financial assistance in relation to a US$3bn loan provided to the State of Qatar.”
The charges, which come after a five year investigation, arise in the context of Barclays' capital raisings in June and November 2008, at the height of the financial crisis.
Barclays said it awaits further details of the charges from the SFO, which has also informed the bank that it has not made a decision as to whether it will also bring charges against it in respect of the loan.
The group added: “Barclays is considering its position in relation to these developments.”
FCA investigation to recommence
The bank also noted that the Financial Conduct Authority’s investigation in relation to the Qatar deals will recommence, having been stayed in view of the SFO's investigation.
The criminal charges are the first to be bought against a bank and its employees related to the 2008 financial crisis.
READ: Barclays chief Jes Staley investigated over whistleblowing claims
In late afternoon trading, Barclays shares were down 1%, or 2.15p at 20.6p.
Daniel Tarling-Hunter, analyst at the Economist Intelligence Unit said: “The step to file criminal charges against top executives is unprecedented and sends a clear message that the SFO is willing to take on the world's largest financial institutions.
“The statement of intent from the SFO is particularly important as prospects for its future remain uncertain after the Conservative party pledged to abolish the agency. Prospects for Barclays, whose profitability has continued to struggle since 2008 are likely worsen in the aftermath of the announcement.”
-- Adds Varley's resignation from Rio Tinto, analyst comment, updates share price --