Barclays and Deutsche Bank may potentially face fresh allegations about Libor-rigging in a court hearing set for October, according to reports.

The Court of Appeal will, reportedly, use the hearing to decide whether businesses suing the two banks over mis-sold interest rate swap products can link their claims to Libor manipulation.

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The case, which is due to restart on October 14, will be closely watched by other firms planning legal action over swaps and will have a big impact on the final bill for banks from the scandal.

 

Dues to pay

In June 2012, Barclays CEO Bob Diamond resigned in the wake of the Libor rate fixing scandal. On 29 June, Mediobanca analyst Christopher Wheeler told PBI that Diamond’s possible exit could cause Barclays to lose private clients assets.

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In November 2012, Barclays saw a global adjusted profit before tax up 18%, while non-performance costs decreased 3% to GBP11.8 billion after absorbing regulatory penalties of GBP290m relating to the industry-wide investigation into the setting of LIBOR rates.

The United States Federal Energy Regulatory Commission (FERC) Office of Enforcement (FERC Staff) has been investigating Barclays’ power trading in the western US from late 2006 through 2008.

On 25 October 2012, the FERC notified Barclays that it has authorised the issuance of a public order to show cause and notice of proposed penalties against Barclays in relation to this matter.

 

Easing out

In April 2013, Tom Kalaris, head of Barclays’ wealth management and investment management (WIM) unit and Rich Ricci, head of the bank’s investment banking division, said they are to retire by 30 June.

Both the impending departures marked the end of a scandal-hit era at Barclays, ousting two of its most senior executives in the biggest shake-up since Diamond.

Antony Jenkins, 51, who replaced Robert Diamond in August 2012, said the move was to to help restore investor support.

In mid-May 2013, Barclays won the dismissal of a US lawsuit by shareholders of its American depositary receipts, who claimed they lost money because of the British bank’s activity.

Earlier in March, Deutsche Bank’s provisions for mortgage-related litigation in the US has increased by EUR600 million (US$776 million) from preliminary estimates to EUR2.4 billion, as the lender adjusted figures for its preliminary 2012 earnings and capital ratios under International Financial Reporting Standards (IFRS) rules.