Barclays hit by fresh U.S. investigations

Following investigations in the UK over its dealings withQatari investors, Barclays saidthe Department of Justice and Securities and ExchangeCommission were probing whether its relationships withthird parties who help it win or retain business are compliant with U.S. laws. The bank is under investigation by Britain's financial regulator and fraudprosecutor into payments to Qatari investors after it raisedbillions of pounds from the Gulf state five years ago to save it from taking a taxpayerbailout. Barclays revealed the Financial Services Authority (FSA) investigation in July and confirmed the Serious Fraud Office had launched aprobe the following month. Barclays also said on Wednesday the U.S. Federal Energy Regulatory Commission could be close to fining it over an investigation into the manipulation of power pricesin the western United States from late 2006 until 2008. FERC could notify the bank of proposed penalties as early as Wednesday, and Barclays said it would"vigorously" defend this matter. The investigation was first announced in April, alleging the bank took substantial electricity market positions to move daily indexsettlements. In March, the agency fined Constellation Energy a record $245 million over power market manipulation activities as part of a fresh crackdown on power market rigging. New Barclays CEO Antony Jenkins, who took over at theend of July when his predecessor Bob Diamond quit after the bank admitted rigging Libor interest rates, isin the midst of a review to change culture and lift profitability, due to be unveiled in February. Investors have made it clear they want a return on equityabove the cost of equity, higher dividends and for pay to be cut, Jenkins said. That is expected to mean theinvestment bank arm will be significantly cut back. "While we have much to do to restore trust among stakeholders, our universal banking franchise remains strong and well positioned," he said. The bank has fired staff, clawed back pay and taken other disciplinary action aftera "very rigorous" internal investigation into the Libor manipulation, Jenkins said. He declined to provide more specific details on how many staff it had taken actionagainst. Barclays was fined $450 million by U.S. and UK regulators for the rate rigging. More than a dozen other banks are expected to be fined.