Barclays Bank in the Dock

Barclays Back in the Dock

Today sees the start of Barclays appeal against a £50 million fine from the Financial Conduct Authority. Bizarrely the case relates to events 16 years ago when the bank was fighting against a state takeover at the height of the global financial crisis. The FCA asserted that the bank acted recklessly and misled investors by not disclosing it was paying higher fees to the Qatari sovereign wealth fund. It is asserted that these fees secured a £ 4 billion investment that saved the bank to the detriment of other investors. Whilst Barclays and its CEO were acquitted in a criminal trial, this fine scars reputations. John Varley, former CEO, will appear in the Upper Tribunal this week.

UniCredit Makes BPM Bid

UniCredit is set to make a bid for Banco BPM valuing the bank at Euro 10.1 billion. The all-stock offer, if accepted, would create Europe’s third largest lender by market capitalization. CEO, Andrea Orcel, has stated that this offer has no bearing on the bank’s separate bid to acquire Commerzbank. This bid will now need to wait for the outcome of the German general election.

Goldman Funds Hit by Northvolt

Private equity funds managed by Goldman Sachs will need to write off $900 million as a result of their investment in Swedish battery maker, Northvolt. The company has filed for Chapter 11 protection with Goldmans’ funds as the second largest shareholder. Ironically, seven months ago, Goldmans predicted that the shares would be worth six times what they paid for them!