A new line hits British finances tainted: former boss accused of sorting out a questionable £ 2 billion loan while Barclays fought to avoid a government bailout in 2008
The former UK Finance boss involved in a sexism line was drawn deeper into Amanda Staveley’s £ 1.6 billion battle with Barclays.
Staveley, a senior financier, accused Stephen Jones of having designed a “ dubious ” loan of £ 2 billion as Barclays fought to avoid a government bailout in 2008.
Jones resigned as boss of the lobby group on Tuesday after making “very derogatory” comments about Staveley during the financial crisis.
Amanda Staveley: the top financier, accused of high ranking at Barclays of “sexism and misogyny”
But as managing director of Barclays Capital at the time, he also helped arrange a loan with Qatari investors who, according to Staveley, could be illegal.
Staveley, who burst into tears yesterday after being accused of trying to “ jostle ” Barclays with hundreds of millions of pounds, previously told the court that Barclays had secretly offered Qatari investors the loan of 2 billions of pounds behind his back, while hiding it from shareholders.
She suggested that the money, loaned in November 2008, was used to invest in Barclays stocks – a prohibited practice known as financial aid.
In October 2008, the bank was desperate to avoid a government bailout by raising 7.3 billion pounds from Middle Eastern investors, the court heard.
Staveley and his firm PCP Capital helped secure a bailout from Abu Dhabi investors.
Yellow Pages Fraud Claim
By TOM WITHEROW and JAMES BOOTH
The president of UK Finance faces a hearing next month in a multi-million pound claim alleging that he defrauded shareholders while president of the owner of the Yellow Pages, Hibu.
The affair in the United States was a major headache for the big one of the city, Bob Wigley, who lost its chief executive officer, Stephen Jones, for a sexism story earlier this week.
Hearing: Bob Wigley, a city man, is accused of defrauding shareholders when he was president of the owner of the Yellow Pages, Hibu
The claim relates to Wigley’s time as president of the Hibu directory business, which crashed in 2013 by canceling the assets of small shareholders.
An action group of 450 injured former shareholders sued Wigley, Hibu and other directors of the company in the United States last summer.
The case is expected to go to the US District Court for Philadelphia on July 20 on a motion to dismiss the claim, according to documents filed in the United States this week.
The lawsuit, first filed in August of last year, alleges that Wigley and Hibu CEO Mike Pocock, who died in December 2018, misled shareholders with positive updates on the position of the company, while transferring money to subsidiaries to prepare for administration.
The lawsuit accuses Hibu and its former directors of fraudulent misrepresentation, deception and negligent misrepresentation.
The assertion said: “ The plot culminated when, in secret cooperation with its lenders, the company effectively disposed of assets in order to be able to claim “ administration ” and extinguished the rights of its shareholders. , without any compensation. ”
The defense argues that the case should be dismissed because the court has no jurisdiction over the accused and the request was made too late.
Chris Belcher of the Hibu action group said the shareholders took the case to the United States after feeling disappointed with the UK regulatory response to their demands.
Higley could not be reached for comment yesterday.
She said Barclays had told her six times that the PCP and Abu Dhabi investors would be offered the same deal as the Qataris, he said.
Instead, the bank is accused of deceiving the markets and channeling an additional £ 346 million in secret charges to the Qataris, a decision which “appeared to be corrupt,” according to court documents.
Staveley is claiming between 400 million and 1.6 billion in damages.
The loan, according to Staveley’s testimony, was “a large unsecured loan the purpose of which seemed to change during the negotiations”.
This caused immense concern within Barclays because banks were cutting risky borrowing to protect their balance sheets, it is said.
Former boss: Jones designed £ 2bn “dubious” loan as Barclays fought to avoid government bailout in 2008
But the court learned that former CEO Bob Diamond had lobbied for the deal, and Jones said on a call, “We have to find a way to make this funding available.”
Loan agreed in weeks after Qatar investment in Barclays, it is said, and Jones admitted “we would go to jail” if the money was “explicitly to finance capital raising efforts “.
In court documents, Staveley’s PCP claims that the granting of the loan constituted illegal financial assistance under the Companies Act of 1985. Barclays disputed the claim, claiming that the loan agreement explicitly prevented Qatar from use the money that way.
Staveley was charged yesterday with lying by Barclays’ lawyer.
Jeffery Onions QC rejected Staveley’s claim that it was crucial to the Abu Dhabi rescue deal and presented her as an inexperienced gamer ready to use false documents to make a fortune.
He said: “ You were indeed engaged in what you might colloquially call a scramble – trying to place yourself in the center. You had no funds to invest and nothing to offer.
Staveley also accused Barclays’ high-ranking officer of “ sexism and misogyny ”, with leaders calling her “ pie ” and “ foxy blonde ”.
Jones’ personal comments about Staveley were not disclosed, but said that they were “ totally inappropriate. I regret having made these comments and I cannot defend them and I will not seek to do so ”. UK Finance declined to comment.