Sep 30, 2022
Barclays to pay $360mn after SEC charges bank over $18bn sale error
Barclays has agreed to pay $361mn to settle charges that a clerical error led the UK bank to offer for sale billions of dollars worth of structured financial products that it was not permitted to trade. The $361mn payment consists of a $200mn civil penalty and $161mn disgorgement of interest earned, which the SEC said had been satisfied by Barclays repayment back to investors when the error was uncovered. In the second quarter, Barclays had also provisioned £165mn to cover a potential penalty from the SEC. Barclays had previously said it would cost the bank £450mn to compensate investors for the clerical error. The roots of the clerical error trace back to an earlier SEC enforcement action that involved Barclays paying $97mn to settle allegations that it had overcharged clients by nearly $50mn. Thursday's SEC action comes in the same week that the SEC and the Commodity Futures Trading Commission fined Barclays $200mn over widespread lapses in record-keeping practices, part of a $1.8bn raft of penalties against 11 banks and brokers.
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