You might think losing some $600 million because some back-office person forgot to keep track of how many structured notes you’ve sold and/or some lawyer forgot to file the boilerplate with the Securities and Exchange Commission informing it that you’d be selling some more would be enough to ensure that something like that never happens again. Certainly, a screw-up of similar magnitude at Citigroup seems to have done that trick. But when it comes to Barclays, well, the SEC just not sure. So it has a little reinforcement to remind the Brits not to cross it again.
"While we acknowledge Barclays' efforts to identify, disclose and remediate this conduct, the control deficiencies and the scope of the conduct at issue here was simply staggering," Gurbir Grewal, director of the SEC's Division of Enforcement, said in a statement…. On Thursday, the SEC said Barclays had also agreed to pay a $200 million civil penalty for the control lapses.
Barclays hit by $361 million U.S. penalty for 'staggering' blunder [Reuters via Yahoo!]
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