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Barclays faces $590 million hit, scrutiny over sales slip-up

Barclays also said on Monday that it will have to delay a planned 1 billion pound share buyback as of the loss, which it will have to incur as a result of buying back the securities in question at their original purchase price.

March 29, 2022 / 02:26 PM IST

British bank Barclays faces an estimated 450 million pound ($592 million) loss and regulatory scrutiny for exceeding a US limit on sales of structured products, some of which have surged in popularity since Russia's invasion of Ukraine.

Barclays also said on Monday that it will have to delay a planned 1 billion pound share buyback as of the loss, which it will have to incur as a result of buying back the securities in question at their original purchase price.

Shares in Barclays closed down 4 percent after the bank said it had oversold billions of pounds worth of the securities over a period of about a year, overshooting a $20.8 billion limit agreed with United States regulators by $15.2 billion.

The major regulatory blunder is an early embarrassment for C.S. Venkatakrishnan, the newly-appointed chief executive of Barclays, whose previous roles included heading up the bank's global markets and risk operations.