Barclays takes $77 million hit from British and U.S. fines

Tue Sep 23, 2014 1:46pm EDT
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By Kirstin Ridley and Sarah N. Lynch

LONDON/NEW YORK (Reuters) - British bank Barclays (BARC.L: Quote) was hit with a combined $77 million in fines from British and U.S. regulators on Tuesday as the lender continues to be dogged by problems from its past.

Barclays was fined 38 million pounds ($62 million) by Britain's Financial Conduct Authority (FCA) for exposing customers to unnecessary risks by failing to ensure that client assets were properly safeguarded and adequate records kept.

Hours later it was hit with a $15 million fine from the U.S. Securities and Exchange Commission (SEC) for lax internal compliance processes after its takeover of the U.S. operations of Lehman Brothers in September 2008.

The SEC said Barclays will be required to undertake certain remedial steps, including the hiring of an independent compliance consultant.

It U.S. regulator said that Barclays failed to enhance its compliance program when it bought Lehman's advisory business after the U.S. bank's collapse. The shortcomings, the SEC said, led Barclays to commit a variety of other violations of federal laws governing investment advisers.

It said the violations resulted in overcharging and client losses of approximately $472,000 and additional revenue to Barclays of more than $3.1 million. The bank has since reimbursed or credited affected clients about $3.8 million, the SEC said.

Barclays is trying to improve standards and its corporate culture after being rocked by a series of scandals - including the mis-selling of loan insurance and the attempted manipulation of Libor interest rates - which raised concern about lax standards.


Logos are seen outside a branch of Barclays bank in London July 30, 2013. REUTERS/Toby Melville