Authorities probing Barclays over Qatar loan allegation - FT

LONDON Fri Feb 1, 2013 2:05am GMT

A man passes automated teller machines at a Barclays bank branch in London August 30, 2012. REUTERS/Neil Hall

A man passes automated teller machines at a Barclays bank branch in London August 30, 2012.

Credit: Reuters/Neil Hall

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LONDON (Reuters) - Authorities in the UK are looking into an allegation that Barclays loaned Qatar money to invest in the bank as part of its cash call during the height of the financial crisis in 2008, allowing the bank to avoid a bailout, The Financial Times reported on its website on Thursday.

The newspaper reported that two unnamed sources had told it about the investigation into the alleged loan.

The Financial Services Authority and the Serious Fraud Office have been looking into Barclays' emergency fundraising.

Barclays confirmed in August that Britain's fraud prosecutors had launched a criminal probe into payments between the bank and Qatar Holding, adding to an ongoing regulatory investigation into dealings between the two parties.

A Barclays spokesperson told Reuters, "Both the FSA and SFO investigations are on-going, and as such we are unable to comment further." The FSA would not comment when contacted by Reuters.

(Reporting By Costas Pitas)

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