Ex-Barclays execs hid Qatar payments, court told

Former Barclays executives did not disclose £322 million their bank paid in fees to Qatar after being bailed out by the Gulf state during the financial crisis, their fraud trial heard Wednesday.

At an earlier hearing, Barclays former chief executive John Varley and ex-executives Roger Jenkins, Thomas Kalaris and Richard Boath all denied conspiracy to commit fraud in connection with the alleged incident, which took place in 2008 at the height of the crisis.

On Wednesday at the formal start of the trial in London, prosecuting lawyer Edward Brown told Southwark Crown Court: “The backdrop of this case is the global financial crisis of 2008” when Barclays and other banks were “under sometimes extreme pressure to raise further capital”.

The bankers on trial were motivated by keeping their jobs and bonuses, Brown told the jury.

“Those at the top of Barclays were very anxious to avoid accepting government money, thereby placing itself under greater government control and scrutiny,” he said.

Barclays avoided a huge state bailout similar to one cobbled together for Royal Bank of Scotland.

Brown said that Barclays instead received £3.95 billion ($5.15 billion, 4.54 billion euros at current exchange rates) from Qatar between June and November 2008.

For its part Barclays paid fees to Qatar, some of which were not disclosed, the court was told.

“It is the hiding of these additional commission fees which lies at the heart of this case and the conspiracies alleged against the defendants, disguising and hiding extra fees to the tune, ultimately, of… £322 million,” Brown said.

The trial was set to continue on Thursday.

bcp/dt/wai