30th June 2012
Your faithfully
Stan Gain
Treasurer, Christian Peoples Alliance
Barclays Bank Referred to City of London Police in Demand for Criminal Inquiry
Barclays Bank plc has been referred to the City of London Economic Crime Unit by the Christian Peoples Alliance party, who have written to Detective Chief Superintendent Steve Head of the City Police with a demand that staff at the bank be investigated for fraud and the common law offence of conspiracy. The City Police is the acknowledged lead force within the UK for economic crime investigation. The party says it is vital that the Unit ensures Barclays’ staff are brought to book for crimes committed in the course of the interest rigging scandal.
Treasurer of the CPA, Stan Gain, commented about his demand for a criminal enquiry:
“The Coalition’s move to set up an independent review into the inter-bank lending rate fails to deal with the evidence that criminal acts may have been committed. The urgent review now needed is for the City of London Police to look at the evidence gathered by the Financial Services Agency, establish whether it is sufficient for a prosecution and then refer a dossier to the Crown Prosecution Service for them to take action.”
In his letter, Mr Gain asks that Barclays staff be investigated for breaches of Section 2 of the Fraud Act 2006, which provides that a person is in breach of the law if he dishonestly makes a false representation, and intends, by making the representation to make a gain for himself or another, or to cause loss to another or to expose another to a risk of loss. The CPA adds that there is also the common law offence of conspiracy to defraud for the police to consider.
Mr Gain added:
“Last year, we saw a man who stole bottles of water worth £3.50 sentenced to 6 months in jail for offences committed during the London riots. According to the City of London Police, financial fraud costs the nation a staggering £30 billion a year. Swift action was taken against criminals last summer who wrecked our city’s streets and we fully expect the same swift and forceful justice for Barclays bankers who have wrecked public trust in our banking system.”
Earlier this week, Barclays was hit with a record fine after it was found in an investigation by British and US authorities to have tried to manipulate inter-bank interest rates. It was fined £290 million while the investigation continues into suspected manipulation by several banks that help set the Libor and Euribor rates -- benchmark reference figures compiled from rates that banks pay to each other for loans. The Libor and Euribor play a major role in international financial markets, and are linked to the level of borrowing costs passed on by banks to businesses and consumers for products such as mortgage loans.
Notes to Editors:
City of London Economic Crime Unit here:
http://www.cityoflondon.police.uk/CityPolice/Departments/ECD/
http://www.cityoflondon.police.uk/CityPolice/Departments/ECD/
The full letter is below:
Detective Chief Superintendent Steve Head
City of London Economic Crime Unit
City of London Police
PO Box 36451
London
EC2M 4WN
PO Box 36451
London
EC2M 4WN
Dear Detective Chief Superintendent, 30th June 2012
Barclays Bank
I write to you in your capacities as Commissioners of your respective
police forces, with respective jurisdictions throughout London. It will
not have escaped your notice that Barclays Bank plc have agreed with
various regulatory authorities a settlement of £290million in respect of
various matters.
police forces, with respective jurisdictions throughout London. It will
not have escaped your notice that Barclays Bank plc have agreed with
various regulatory authorities a settlement of £290million in respect of
various matters.
In his capacity as Chief Executive Officer of Barclays, Bob Diamond wrote
yesterday to Andrew Tyrie MP, Chairman of the Parliamentary Treasury
Committee. In that letter he said:
yesterday to Andrew Tyrie MP, Chairman of the Parliamentary Treasury
Committee. In that letter he said:
“The first issue is that Barclays traders attempted to influence the
bank’s submissions in order to try to benefit their own desks’ trading
position”
bank’s submissions in order to try to benefit their own desks’ trading
position”
It appears that by making such attempts those individuals were in breach
of Section 2 of the Fraud Act 2006. As you will be aware, this provides
that a person is in breach of the law if he dishonestly makes a false
representation, and intends, by making the representation to make a gain
for himself or another, or to cause loss to another or to expose another
to a risk of loss.
of Section 2 of the Fraud Act 2006. As you will be aware, this provides
that a person is in breach of the law if he dishonestly makes a false
representation, and intends, by making the representation to make a gain
for himself or another, or to cause loss to another or to expose another
to a risk of loss.
It further provides that a representation (which may be express or
implied) is false if it is untrue or misleading, and the person making it
knows that it is, or might be, untrue or misleading; and that a
representation can be made ‘in any form to any system or device designed
to receive convey or respond to communications (with or without human
intervention)’.
implied) is false if it is untrue or misleading, and the person making it
knows that it is, or might be, untrue or misleading; and that a
representation can be made ‘in any form to any system or device designed
to receive convey or respond to communications (with or without human
intervention)’.
This last clause would appear to cover all manner of electronic
communications used in modern banking, including the use of automatic
updating systems.
communications used in modern banking, including the use of automatic
updating systems.
In that letter Mr Diamond also writes:
“This inappropriate conduct was limited to a small number of people
relative to the size of Barclays trading operations, and the authorities
found no evidence that anyone more senior than the immediate desk
supervisors was aware of the requests by traders, at the time that they
were made”
relative to the size of Barclays trading operations, and the authorities
found no evidence that anyone more senior than the immediate desk
supervisors was aware of the requests by traders, at the time that they
were made”
This appears to be in contrast to the Financial Services Authority (FSA)
Report of 27 June 2012 in which the FSA state:
Report of 27 June 2012 in which the FSA state:
“Barclays’ breaches of the FSA’s requirements encompassed a number of
issues, involved a significant number of employees and occurred over a
number of years.” (my emphasis)
issues, involved a significant number of employees and occurred over a
number of years.” (my emphasis)
Whether it is ‘a small number of people relative to the size of Barclays’
or ‘a significant number of people’, these statements, together with the
emails that are currently being reported in the press, evidence that these
acts were being carried out by agreement between two or more individuals
in order to deprive others; including exposing them to economic risk or
disadvantage. If that is correct then there is not only a statutory
offence under section 2 Fraud Act 2006 but also the common law offence of
conspiracy to defraud to consider.
or ‘a significant number of people’, these statements, together with the
emails that are currently being reported in the press, evidence that these
acts were being carried out by agreement between two or more individuals
in order to deprive others; including exposing them to economic risk or
disadvantage. If that is correct then there is not only a statutory
offence under section 2 Fraud Act 2006 but also the common law offence of
conspiracy to defraud to consider.
You will appreciate, however, that the issues do not stop there. For, as
the FSA put it:
“Barclays’ misconduct included:
• making submissions which formed part of the LIBOR and EURIBOR setting
process that took into account requests from Barclays’ interest rate
derivatives traders. These traders were motivated by profit and sought to
benefit Barclays’ trading positions;
• seeking to influence the EURIBOR submissions of other banks contributing
to the rate setting process; and
• reducing its LIBOR submissions during the financial crisis as a result
of senior management’s concerns over negative media comment.”
the FSA put it:
“Barclays’ misconduct included:
• making submissions which formed part of the LIBOR and EURIBOR setting
process that took into account requests from Barclays’ interest rate
derivatives traders. These traders were motivated by profit and sought to
benefit Barclays’ trading positions;
• seeking to influence the EURIBOR submissions of other banks contributing
to the rate setting process; and
• reducing its LIBOR submissions during the financial crisis as a result
of senior management’s concerns over negative media comment.”
Or, as Mr Diamond put it:
“I accept that the decision to lower submissions was wrong.”
For the agreement that was necessary for those “lower submissions” to be
made appears to have been to deceive those at other banks, as well as
those at the British Bankers Association and Reuters who, respectively,
had the responsibility for setting the LIBOR Rate and EURIBOR rates for
the relevant periods. If that is correct, then you will appreciate there
maybe another aspect of the offence of conspiracy to defraud that is
relevant.
made appears to have been to deceive those at other banks, as well as
those at the British Bankers Association and Reuters who, respectively,
had the responsibility for setting the LIBOR Rate and EURIBOR rates for
the relevant periods. If that is correct, then you will appreciate there
maybe another aspect of the offence of conspiracy to defraud that is
relevant.
Consequently I wish to make a formal complaint that I believe the actions
of persons unknown, but believed to have been working for Barclays Bank
plc, were in serious breach of the criminal law and should be grateful if
you would undertake the necessary investigation to determine whether this
is, or is not, the case.
of persons unknown, but believed to have been working for Barclays Bank
plc, were in serious breach of the criminal law and should be grateful if
you would undertake the necessary investigation to determine whether this
is, or is not, the case.
Your faithfully
Stan Gain
Treasurer, Christian Peoples Alliance
4 Ewhurst Road
Crofton Park
London
SE4 1AQ
Crofton Park
London
SE4 1AQ
