The banking sector is no stranger to upsetting the regulators and Barclays is once again in the firing line, according to reports.
AJ Bell’s Russ Mould said: “Talk of a probe into its anti-money laundering systems would be the latest blunder for the bank following issues around unauthorised sales of structured financial products, mis-sold timeshare loans and staff using messaging systems such as WhatsApp to talk business and not keeping records, among others.
“The market doesn’t seem too worried with Barclays’ shares only down 0.8%, perhaps implying that regulatory mistakes are part of the territory with this sector. In these situations, if a bank is found guilty, they get slapped on the wrist by the regulator, they pay a fine and move on. If a big enough carrot is dangled in front of investors in the form of generous dividends, those owning the shares don’t seem too bothered about poor business practices which doesn’t seem right.”