Barclays in foreign rate probe
Barclays has revealed it has been drawn into a worldwide investigation into alleged manipulation of currency rates as it reported profits from its investment banking arm had fell by half in the third quarter.
It said a number of regulatory and enforcement authorities were investigating foreign exchange trading, including attempts to manipulate benchmark exchange rates.
Barclays said it was co-operating and was reviewing its foreign exchange trading over a period of several years to August this year.
The group reported total profit before tax for the period down by 26% to £1.38bn compared to the same period last year. Barclays said pre-tax profits from its investment bank dropped by 53% to £463m. Lower activity was driven by uncertainty about when the US Federal Reserve would start slowing its quantitative easing programme that is pumping billions of dollars into the economy every month.
Profits from UK retail and business banking were 2% down at £351m. The bank said that provision for mis-selling PPI remained unchanged. It has £1.26bn left of a £3.95bn pot set aside to cover compensation schemes.