Barclays Suspends Buybacks Following US Trading Error
British banking giant Barclays has suspended its $1.25 billion share buyback plan until a resolution has been reached with US regulators over a major trading error.
On March 28, the bank disclosed that it had exceeded a US limit on sales of structured products. This triggered a loss and a potential restatement of Barclays’ 2021 accounts.
Barclays’ new CEO, C.S. Venkatakrishnan, has reportedly said that the bank found no evidence to date of deliberate misconduct relating to the blunder and that Barclays was cooperating with all relevant regulators.
On Thursday, the bank said it planned to begin the $1.25 billion buyback “as soon as practicable” after resolving the situation with the US authorities.
“Barclays believes that it is prudent to delay the commencement of the buyback programme until those discussions [with the SEC] have been concluded,” Barclays said.
“Barclays remains committed to the share buyback programme and the intention would be to launch it as soon as practicable following resolution of filing requirements being reached with the SEC and the appropriate 20-F filings having been made.”
