Four former Barclays directors, including former chief executive John Varley, have appeared in court in a fraud case relating to the 2008 banking crisis, brought by the Serious Fraud Office (SFO), and released on bail
Last month the SFO brought charges against Barclays and the four ex-directors in relation to their dealing with Qatari investors in 2008, the first time senior bankers have ever faced prosecution for the way they behaved during the crisis. The bank avoided a government bailout by raising more than £11bn in two cash calls in which the Qataris participated.
Varley was joined at the Westminster magistrates court for a preliminary hearing by Roger Jenkins, the former executive chairman of investment banking and investment management in the Middle East and North Africa, Barclays Capital, Thomas Kalanithi former chief executive of Barclays wealth and investment management, and Richard Boath, the former European head of financial institutions group.
All four spoke only to confirm their names, ages and addresses and were bailed to appear at the next hearing on 17 July which will take place at Southwark Crown Court, when they are expected to enter a plea.
Barclays, Varley and Jenkins face two counts of conspiracy to commit fraud by false representation related to emergency fundraisings undertaken in June 2008 and November 2008. Boath and Kalaris each face one fraud count over the June cash call.
The fraud charges relate to £322m in fees that Barclays paid to the Qatari investors.
Barclays, Varley and Jenkins also face one count each of unlawful financial assistance. This relates to a $3bn (£2.3bn) loan that Barclays made to Qatar at the time of a second cash call.
The SFO alleges that the loan was used to finance Qatar’s participation in the fundraising exercise.
