Barclays prepares for potential fine of £2bn

Barclays has set aside another £800m (€1.1bn) to cover potential settlements for alleged foreign exchange manipulation, hitting profits and reflecting its struggle to put past problems behind it.

Barclays said, yesterday, it had now set aside £2.05bn to cover any settlement, but offered only limited clues on how soon a deal might come. US and British authorities are investigating the allegations. Barclays pulled out of a settlement between some authorities and six rival banks in November because it had not reached a deal with New York’s regulator.

“That (extra provision) reflects the further discussions we’ve been having with a number of regulators and agencies around the world across multiple jurisdictions,” finance director Tushar Morzaria told reporters.