Daily roundup with fraud conspiracy | Calamatta Cuschieri

European Markets closed in the red, reversing gains from the opening after Bank of England governor Mark Carney announced the bank does not intend to raise interest rates

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Calamatta Cuschieri
21 June 2017, 11:17am
Barclays Bank charged with conspiracy to commit fraud, involving Qatar during the Financial Crisis in 2008
Barclays Bank charged with conspiracy to commit fraud, involving Qatar during the Financial Crisis in 2008
European Markets closed in the red, reversing gains from the opening after Bank of England (BoE) governor Mark Carney announced the United Kingdom's central bank does not intend to raise interest rates due to unfavourable economic conditions at the moment, which also sent the Pound spiralling down.

Carney also noted that spare capacity in the economy is expected to shrink, reducing BoE's tolerance for inflation above target. However, the policymaker expressed the view that it is not the time to tighten policy, citing weak upward pressures on prices, namely wage growth. Talking on negotiations about Britain’s departure from the European Union, the governor stressed: “Raising barriers to trade disproportionately hurts the least well off through higher prices and fewer opportunities.”

On Wall Street, markets opened and closed in the negative territory following the Bureau of Economic Analysis report that the US current account deficit rose to $116.8 billion in the first quarter for 2017, higher from the same quarter in the previous year.

In a nutshell

In London, the FTSE finished 0.68% lower. Barclays declined 1.91% following the fraud charge. German DAX shed 0.58% at the close, led by industrial giant Thyssenkrupp loss of 1.86%. In France, the CAC 40 slipped 0.32% at the end. The euro lost 0.24% against the United States dollar while the British pound decreased 0.70% against the European currency. 

Fraud conspiracy

Meanwhile, UK regulators charged Barclays with conspiracy to commit fraud, involving Qatar. This comes after Barclays and its four former executives were charged with conspiracy to commit fraud when they sought investment from Qatar in 2008 in an attempt to avoid a bailout during the financial crisis. Another charge for unlawful financial assistance is also underway.

The bank itself, the former chief executive, the investment banking head, the wealth and investment management head and the European head of the lender’s financial institutions group are being charged with capital raising arrangements with the Middle Eastern Emirate, worth several billion pounds, and a $3 billion loan facility made available to Qatar’s Ministry of Economy and Finance.

The funding came from the national wealth fund Qatar Holding Llc and Challenger Universal Ltd, controlled by the Qatar Prime Minister at that time. So far, these are the first criminal charges against any bank or top executives in the sector over events during the 2008 crisis, which devastated the financial system.

Disclaimer:

This article was issued by Rodrick Duca, Trader at Calamatta Cuschieri. For more information visit, www.cc.com.mt. The information, view and opinions provided in this article is being provided solely for educational and informational purposes and should not be construed as investment advice, advice concerning particular investments or investment decisions, or tax or legal advice. Calamatta Cuschieri Investment Services Ltd has not verified and consequently neither warrants the accuracy nor the veracity of any information, views or opinions appearing on this website.

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