The Bank of England is keeping an eye on Barclays because some traders falsified private credit exposure
The regulator received a complaint that alleges the British entity underestimated the risk of derivatives used to finance private credit loans.
The UK's Prudential Regulation Authority (PRA) is investigating Barclays over a complaint that the bank misclassified private credit loans as trading assets to reduce capital requirements. The complaint alleges that Barclays used derivatives to finance private credit loans and incorrectly assigned them to its trading portfolio. The PRA prohibits banks from allocating illiquid assets to their trading portfolio without sufficient evidence. Barclays' shares fell 1.5% following the news.
Written by urgent.news from Expansion ES's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
