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Barclays faces fresh U.S. probe

  • Barclays has revealed new U.S. investigations into the bank's financial probity over charges that its profit had been hit by charges for mis-selling insurance.

    Shares in the British bank, which is still reeling from an interest rate rigging scandal, fell almost 5 percent on Wednesday.

    The bank said its adjusted pretax profit in the three months to the end of September sat at $2.79 billion, in line with analysts' expectations and up from $2.16 billion a year ago.

    However, a $1.12 billion charge for mis-selling payment protection insurance led to a 23 percent drop in pretax profit to $1.6 billion. A $1.77 billion loss on the value of its own debt resulted in a loss of $75.8 million for the quarter.

    Following recent investigations in the UK over its dealings with Qatari investors, Barclays said the Department of Justice and Securities and Exchange Commission were looking into whether its relationships with third parties who help it win or retain business adhered to U.S. law.

    Barclays also announced that the U.S. Federal Energy Regulatory Commission was close to fining it over an investigation into the manipulation of power prices in the United States from late 2006 until 2008.