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View the article online at http://citywire.co.uk/wealth-manager/article/a645017

Barclays fined €600,000 over structured bond sales

by Sarah Miloudi on Dec 12, 2012 at 07:49

Barclays fined €600,000 over structured bond sales

Barclays has been fined €600,000 by  the Spanish financial regulator for under-estimating the risk of bonds sold to clients.

CNMV,t he country's stock market watchdog, hit the bank with the penalty, serving it to Barclays Bank's Spanish division over four structured bonds sold to clients between January and March 2008, the Times reported.

The latest fine draws a close on what has been a difficult year for Barclays globally, with the Libor manipulation scandal during the summer forcing its former chief executive Bob Diamond (pictured) to quit along with two other senior executives.

The investigation over Libor also resulted in a record £290 million fine, and the bank had to install a new chief executive to help repair its reputation.

4 comments so far. Why not have your say?

Robert Johnsey

Dec 12, 2012 at 08:47

Happy Christmas Barclays - the air is dark with the wings of chickens coming home to roost.

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Mr B-Mused

Dec 12, 2012 at 09:56

And the Structured Investment Sales in the UK......when will that hit the fan? When it does, someone please track down a Mr B Packard!

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Chris Taylor, MD, The Investment Bridge

Dec 12, 2012 at 12:32

@ Mr B-Mused,

Could you B-More Clear : not sure I follow your point?

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Mr B-Mused

Dec 12, 2012 at 12:46

Barclays Financial Planning, whilst headed by Mr Packard, was very keen on the sale of structured products. Structured Products certainly have a place in the market but Barclays took little or no notice of the FSA's guidance with regard to diversification and counterparty risk. (No more than 25% of assets to be held in structured products and no more than 10% in any one product version....). Thus I suspect that there will be a lot of people out there exposed to counterparty risk with a very high percentage of their assets invested in one structured plan that may or may not be successful. I'm pretty sure that lots of banks will be guilty of this one I may add. Interesting that Barclays are to close Woolwich Plan Managers, who issued these. (See previousl article on CityWire).

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