Barclays In Talks With SFO Regarding Qatar Fund Raising Scam

Per Bloomberg, Barclays (LON:BARC) PLC (NYSE:BCS) is in talks with U.K. Serious Fraud Office (SFO) to evade charges against its operating units in relation to a 12 billion-pound ($16.1 billion) fund raising scam during the height of 2008 financial crisis. In June, SFO charged Barclays and its former executives for the non-disclosure of fees paid to the Qatari investors with a trial planned in 2019.

The decision on whether the charges will be levied on Barclays is likely to be announced by the end of January 2018. If the bank’s operating unit is charged with such allegations, it will be difficult for the company to continue operations, as regulatory approvals and licenses will be affected.

Per the charges, Barclays paid 322 million pounds in fees to Qatar Investment Authority and presented a $3 billion loan facility to the country as part of the fundraising that was carried out in 2008. Also, the company was able to avoid a government bailout during the financial crisis with the help of the raised capital.

In 2012, SFO started a probe in this deal. It was found that Barclays made a series of funding agreements with Qatar Holding LLC and Challenger Universal Ltd, which was Qatar’s then prime minister’s investment vehicle. The fund was raised between June-Oct 2008.

However, spokesperson for SFO and the bank declined to comment on this matter.

Considering these legal and other concerns, Barclays’ shares have gained 6.5% over the past six months compared with the industry’s rally of 10.8%.

Further, currently Barclays carries a Zacks Rank #5 (Strong Sell).

Stocks That Warrant a Look

For the current year, the Zacks Consensus Estimate for Shinhan Financial Group (NYSE:SHG) has been revised nearly 8.5% upward in the last 60 days. Its shares have gained 6.8% in the past six months. The company sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Zacks Consensus Estimate for The Bank of N.T. Butterfield & Son Limited (NYSE:NTB) has been revised 2.6% upward for the current year, in the last 60 days. Also, its shares have rallied 11.7% in the past six months. The company carries a Zacks Rank #2 (Buy).

Banco Santander-Chile (NYSE:BSAC) witnessed an upward earnings estimate revision of 1.7% for the current year, in the last 60 days. Also, its shares have gained 26.4% in the past six months. It holds a Zacks Rank of 2.

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Barclays PLC (BCS): Free Stock Analysis Report

Shinhan Financial Group Co Ltd (SHG): Free Stock Analysis Report

Banco Santander (MC:SAN) Chile (BSAC): Free Stock Analysis Report

Bank of N.T. Butterfield & Son Limited (The) (NTB): Free Stock Analysis Report

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