Barclays Head Faces Allegations of Deception and Fraud in New York Attorney General Lawsuit

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Barclays head Antony Jenkins must decide if he will fire back against the accusations that the third largest bank in Britain deceived and defrauded customers in the United States. New York’s Attorney General filed the lawsuit against Barclays.

Should Jenkins accept the allegations, he will be forced to shut down any areas of the business where misconduct is revealed. Jenkins had pledged to get rid of any business that was guilty of corruption.

The U.S. trading desk remains at the forefront of the allegations. The division is part of Barclays’ equities business, an area that the company wanted to keep intact.

Barclays has had a number of woes as a result of the allegations. The company’s shares have dropped by nine percent. Since Jenkins took office in 2012, Barclays has underperformed compared to their European colleagues.

New York Attorney General Eric Schneiderman outlined in the lawsuit that he had evidence of Barclays staff misleading clients and falsifying marketing documents. Schneiderman claims Barclays was looking to increase revenues and bonuses as a result.

Details courtesy of CNBC, photo courtesy of Bloomberg