6/17/2023 0 Comments Red kite capital management londonHedge fund Red Kite has filed a lawsuit against Barclays Plc, alleging the bank manipulated the copper market to its advantage, causing the hedge fund to lose $850 million. Red Kite’s $850 million lawsuit has unearthed these trading losses at Barclays Plc. Macrae’s colleague Christian Saunders, a copper trader at the bank’s Canary Wharf desk, also suffered losses totaling $69.2 million was “summarily dismissed,” citing Barclays documents. Iain Macrae, who ran metals trading at Barclays until his firing in 2011, was let go “for irresponsible risk taking” that led to a $327 million loss. Barclays Bank Plc, High Court of Justice Queen’s Bench Division, CL-2016-000408 The case is not due to go to trial before 2020. The fund has alleged that a practice known as “ramping” took place in 2010, where copper contracts were bid up so that the closing valuations appeared higher than they would have otherwise. Red Kite in 2017 sued Barclays for $850 million,īarclays Bank PLC has been ordered by London’s High Court to carry out disclosure searches for documents relating to four former traders’ bonuses and appraisals. “Legal proceedings between the Red Kite group as Claimants and Barclays Bank PLC as Defendant have been concluded on mutually acceptable terms,” Barclays said in a statement, without giving details of the settlement. Dubbed ‘Mr Copper’ he is one of Britain’s richest men. Michael Farmer, the London-based hedge fund manager and Conservative Party co-treasurer, photographed in his Red Kite Capital Management office in the City of London. LONDON, March 28 (Reuters) – British bank Barclays (BARC.L)has an estimated 450 million pound ($592 million) loss on mishandled structured product sales and said this meant it would now delay a share buyback. The shares are roughly equivalent to a 3.6% stake, Barclays PLC appointed Graham Warner from Deutsche Bank as Americas head of its international corporate banking (ICB) unit, according to a statement by the British multinational bank. In August 2019, the bank set its maximum shelf at $20.8B and in early March 2021, it crossed the amount by $15.2B.Īn unnamed investor sold 599 million shares, facilitated by Goldman Sachs. They added that the bank had continued to operate as if its shelf would automatically increase, which caused it to breach its limit. as it is investigated by regulators over a $15B trading error.īarclays formerly had a license whereby its shelf automatically increased the more products it issued however with the trading scandal this was removed, as per sources close to the matter as cited by Financial Times. It is worth noting that although this will be billed as a Brexit freedom, the EU is undertaking similar reforms.īarclays said that it expected to take a 450 million-pound hit after mistakenly issuing about $15 billion more structured notes and exchange traded notes than it had registered for sale.Barclays (NYSE:BCS) halted the sale of new retail structured products in U.S. Those were introduced after the 2008 financial crisis when some banks faced collapse. Rules governing how senior finance executives are hired, monitored and sanctioned will be overhauled. Most of the big banks have spent billions on this ring fencing and are not calling for its reversal. The cost of having two separate shock-absorbing cushions of spare money was seen by some as placing extra costs on the sector. After the financial crisis, large banks were forced to separate or “ring fence” their domestic banking operations – mortgages and loans for example – from their investment banking operations, which expose their own cash to market volatility and were deemed riskier. The government has already announced it will scrap a cap on bankers’ bonuses and allow insurance companies to invest in long-term assets such as housing and windfarms to boost investment and help its levelling up agenda. Rules that forced banks to legally separate retail banking from riskier investment operations will be reviewed.
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