Market Chatter: Barclays Faces BoE Scrutiny Over Alleged Misrepresentation of Private Credit Risks

MT Newswires Live10-19 17:57

Barclays (BCS) is facing scrutiny from the Bank of England over allegations that traders misclassified derivatives linked to illiquid private credit loans, potentially understating risks and reducing capital requirements, the Financial Times reported Monday, citing unnamed sources.

The probe follows an insider complaint to the Prudential Regulation Authority earlier this year, the report said. Barclays traders reportedly argued that back-to-back swaps made the positions tradable despite the underlying loans being illiquid.

Barclays did not immediately respond to MT Newswires' request for comment. The BoE declined to comment.

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