6th Jul 2020 13:35
(Alliance News) - Former Barclays PLC chief executive John Varley has refuted a suggestion that he "deceived" the bank's board during the 2008 financial crisis.
Varley was giving evidence at a High Court trial in London on Monday after Barclays became embroiled in a GBP1.6 billion battle with a businesswoman.
Amanda Staveley has made complaints about the behaviour of Barclays bosses when negotiating investment deals during the crisis 12 years ago.
She says Barclays agreed to provide an unsecured GBP2 billion loan to Qatari investors.
But she says that loan was "concealed" from the market, shareholders and from PCP Capital Partners, a private equity firm she runs.
PCP is suing the bank and wants GBP1.6 billion in damages.
A judge began overseeing the trial on June 8.
Justice Waksman has already heard evidence from Staveley and witnesses called by PCP.
Staveley, who in recent months has been involved in brokering a deal which could see a Saudi consortium take control of Newcastle United, says PCP introduced Manchester City owner Sheikh Mansour to Barclays and he "subscribed" to invest GBP3.25 billion.
She says PCP is owed money for the work it did.
Barclays disputes PCP's claim and says it is made "of sand".
Varley was questioned by a barrister leading PCP's legal team on Monday.
Joe Smouha QC asked whether information about a particular agreement made with Qatari investors on June 5 2008 had been reported to a Barclays board meeting on June 11.
Varley indicated that information had been given to the board shortly after June 11.
He said: "If you are suggesting to me Smouha, as I think you are, that I in some way deceived the board, then I strongly disagree with that."
Varley has told the judge how, in 2017, the Serious Fraud Office had brought criminal charges against him.
He said he had "maintained my complete innocence of any criminal offences" and a judge had ruled that he had no case to answer.
In February, three other former Barclays bosses were cleared of fraud over a GBP4 billion investment deal with Qatar at the height of the banking crisis.
The SFO had alleged that lucrative terms given to Qatar were hidden from the market and other investors through bogus advisory service agreements.
But Roger Jenkins, Thomas Kalaris and Richard Boath were acquitted by jurors following a five-month trial at the Old Bailey.
By Brian Farmer, PA
source: PA
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