Barclays 2015 Annual Report Download - page 314

312 I Barclays PLC Annual Report 2015 home.barclays/annualreport
Notes to the financial statements
Accruals, provisions, contingent liabilities and legal proceedings
29 Legal, competition and regulatory matters continued
Background Information
In October 2008, BDC filed a complaint in the NY Supreme Court alleging that BBPLC breached the Agreement when it failed to transfer
approximately $40m of alleged excess collateral in response to BDC’s October 2008 demand (Demand).
BDC asserts that under the Agreement BBPLC was not entitled to dispute the Demand before transferring the alleged excess collateral and that even
if the Agreement entitled BBPLC to dispute the Demand before making the transfer, BBPLC failed to dispute the Demand. BDC demands damages
totalling $298m plus attorneys’ fees, expenses, and prejudgement interest. Proceedings are currently pending before the NY Supreme Court.
In September 2011, BDC’s investment advisor, BDCM Fund Adviser L.L.C. and its parent company, Black Diamond Capital Holdings L.L.C. also sued
BBPLC and BCI in Connecticut State Court for unspecified damages allegedly resulting from BBPLC’s conduct relating to the Agreement, asserting
claims for violation of the Connecticut Unfair Trade Practices Act and tortious interference with business and prospective business relations. The
parties have agreed to a stay of that case.
Claimed Amounts/Financial Impact
BDC has made claims against the Group totalling $298m plus attorneys’ fees, expenses, and pre-judgement interest. This amount does not
necessarily reflect the Group’s potential financial exposure if a ruling were to be made against it.
Civil Actions in respect of the US Anti-Terrorism Act
In April 2015, an amended civil complaint was filed in the US Federal Court in the Eastern District of New York by a group of approximately 250
plaintiffs, alleging that BBPLC and a number of other banks engaged in a conspiracy and violated the US Anti-Terrorism Act (ATA) by facilitating US
dollar denominated transactions for the Government of Iran and various Iranian banks, which in turn funded Hezbollah attacks that injured the
plaintiffs’ family members. Plaintiffs seek to recover for pain, suffering and mental anguish pursuant to the provisions of the ATA, which allows for the
tripling of any proven damages. BBPLC has filed a motion to dismiss the action which is fully briefed.
Claimed Amounts/Financial Impact
It is not currently practicable to provide an estimate of the financial impact of the matters in this section or what effect that these matters might have
upon operating results, cash flows or the Group’s financial position in any particular period.
Interest Rate Swap US Civil Action
In November 2015, an antitrust class action was filed against BPLC, BBPLC, BCI and other financial institutions in the SDNY by a US retirement and
pension fund. The complaint alleges that the defendants that act as market makers for certain types of derivatives and Tradeweb conspired to
prevent the development of exchanges for interest rate swaps (IRS) and demands unspecified money damages, treble damages and legal fees. The
plaintiff claims to represent a class of buy-side investors that transacted in fixed-for-floating IRS with defendants in the US from 1 January 2008 to
the present, including other retirement funds, university endowments, municipalities, corporations and insurance companies.
Claimed Amounts/Financial Impact
It is not currently practicable to provide an estimate of the financial impact of the action described on the Group or what effect it has upon the
Group’s operating results, cash flows or financial position in any particular period.
Treasury Auction Securities Civil Actions
Numerous putative class action complaints have been filed in US Federal Courts against BCI and other financial institutions that have served as
primary dealers in US Treasury securities. The complaints have been or are in the process of being consolidated in the Federal Court in New York. The
complaints generally allege that defendants conspired to manipulate the US Treasury securities market in violation of US federal antitrust laws, the
CEA and state common law. Some complaints also allege that defendants engaged in illegal “spoofing” of the US Treasury market. The Group is
considering the allegations in the complaints and is keeping all relevant agencies informed.
Claimed Amounts/Financial Impact
It is not currently practicable to provide an estimate of the financial impact of the actions described on the Group or what effect that they might have
upon the Group’s operating results, cash flows or financial position in any particular period.
Investigation into Americas Wealth & Investment Management Advisory Business
The SEC is investigating the non-performance of certain due diligence on third-party managers by the Manager Research division of Barclays’ Wealth
& Investment Management, Americas investment advisory business and the Group is responding to requests for information.
Claimed Amounts/Financial Impact
It is not currently practicable to provide an estimate of the financial impact of the investigation on the Group or what effect that it might have upon
the Group’s operating results, cash flows or financial position in any particular period.
Retail Structured Products Investigation
The Group is cooperating with an enforcement investigation commenced by the FCA in connection with structured deposit products provided to UK
customers from June 2008 to the present.
Claimed Amounts/Financial Impact
It is not currently practicable to provide an estimate of the financial impact of these matters or what effect that they may have upon operating
results, cash flows or the Group’s financial position in any particular period.