Friday, February 1, 2013

Barclays under investigation over claims it lent Qatar £6bn to buy its own shares and avoid a Government bailout at height of 2008 financial crisis

Barclays has been accused of lending billions to Qatar just so the Arab state would plough it back in again to help avoid an embarrassing government bailout, it emerged today.

The deal is alleged to have been set up in 2008, at the height of the banking crisis, and is being probed by the Serious Fraud Office and the Financial Services Authority.

According to reports more than £6billion was lent to Qatar Holding, part of the rich country's huge investment fund, which then bought shares in Barclays to help them avoid becoming part-nationalised like Lloyds Bank and the Royal Bank of Scotland.