Barclays (LON:BARC) reported suspicions of a new market manipulation scandal to the City regulator this year, The Times has revealed. The move came amid fears that one of its traders had been sharing confidential client information with a banker at a rival firm.
Barclays’ share price has climbed higher in London in today’s session, having gained 2.20 percent to 166.46p as of 10:35 GMT. The advance is in line with the broader market rally, with the benchmark FTSE 100 currently standing 2.17 percent higher at 7,131.37 points. The group’s shares have given up just under 12 percent of their value over the past year, as compared with about a 2.2-percent dip in the Footsie.
Barclays reports suspicions
The Times reported this morning that Barclays had handed over to the Financial Conduct Authority (FCA) what it believed could be suspicious communications between one of its former senior employees and a trader at BNP Paribas, prompting an investigation by the watchdog.
The newspaper notes that while Barclays and BNP Paribas were told by the FCA they had done nothing that justified further action by the regulator, the French bank had handed one of its London-based investment bankers a formal warning.
Analysts on FTSE 100 lender
UBS reiterated its ‘buy’ rating on Barclays last week, valuing the shares at 240p, while Morgan Stanley, which sees the lender as an ‘equal weight,’ trimmed its price target on the stock from 225p to 210p. According to MarketBeat, the blue-chip group currently has a consensus ‘buy’ rating and an average price target of 225p.
Last month, a US court ruled that Barclays is not liable to investors who bought its US-listed stock in the run-up to the financial crisis.