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Barclays Halts Certain Debt Activities After £540 Million Clerical Error

Barclays Halts Certain Debt Activities After £540 Million Clerical Error

Barclays Plc has suspended market-making activities in its own debt securities, as it navigates the process of fixing a paperwork blunder that saw it mistakenly issue $15 billion of U.S. securities.

The suspension impacts the securities of both Barclays PLC and Barclays Bank Plc, the unit that houses the investment bank, according to a statement Friday. The lender said it “will continue to evaluate the extent to which it can resume market making in any such individual security.”

Barclays, which has commissioned an ongoing review by external counsel into the clerical error, said on Thursday that the error showed “material weakness” in relation to the group’s internal control environment. As a result, the bank and its subsidiary are preparing amendments to their annual reports to reflect this.

The move, while procedural, adds to the unusual saga, which has been derided as “basic” and “bizarre” by analysts. 

“I doubt that market making in the banks’ own securities is material at all,” said Romain Miginiac, head of research at Atlanticomnium SA. “It’s just embarrassing for the bank.”

The bank revealed in late-March that it had mistakenly sold billions of dollars more securities over the course of about a year than it had permission for from U.S. regulators. Barclays said Thursday it had booked a charge of 540 million pounds ($678 million) related to the blunder.

The lender said yesterday it had suspended sales of another 30 exchange-traded notes until it is able to fix a paperwork issue with U.S. regulators. 

A spokesperson for Barclays declined to detail what specific securities would be impacted.

©2022 Bloomberg L.P.