Bank of England Examines Barclays Over Private Credit Derivatives

Regulators are investigating Barclays after whistleblower claims that private credit derivatives risks were understated.

The Bank of England is reviewing Barclays following allegations that bank traders misstated risks tied to derivatives financing private credit loans. A whistleblower complaint triggered the regulatory scrutiny over whether financial contracts were improperly logged to enhance profitability.

• The regulatorThe Prudential Regulation Authority received the whistleblower complaint against the British lender.
• The concernFinancial derivatives used to support private credit loans were allegedly logged incorrectly.
• The consequenceThe improper accounting practices may have artificially inflated the bank's reported profits.