Did you buy structured products from a Barclays registered broker? If so, those losses may be recoverable through the Financial Industry Regulatory Authority (FINRA) arbitration process on a contingency fee basis. Recently, Barclays stopped selling highly engineered certificates of deposit (CDs) that resulted in customers earning zero interest. In 2012, FINRA investigated whether buyers of these types of products had a clear understanding of the risks associated with them. Structured products offer retail investors easy access to derivatives and tend to be risky, with their returns tied to a group of stocks or other assets, that could yield as much as 5 percent annually, much higher than the average 1.19 percent average for a five-year conventional CD. In June 2011, Barclays sold a CD based on stocks including AT&T Inc., Phizer Inc. and Alphabet Inc., Google’s parent company. Barclays gave more credit for the stock’s decline than for its gains. Two of the stocks in the basket, Apollo Education Group and Weight Watcher International, tanked, pushing the coupon to zero. If you suffered losses because of a recommendation or sale of these structured products through a Barclays broker, you may be able to recover your losses by calling us today. The call is free with no obligation. We will discuss your options of bringing legl recourse against Barclays.
I discuss with Bloomberg today why peddlers of structured products are in the cross-hair of regulators and the reason Barcalys is shutting down the sales of synthetic CDs.
Barclays and Credit Suisse have settled federal and state charges that they misled investors in their dark pools, and Barclays admitted it broke the law. The firms must pay a combined total of $154.3 million. Both are alleged to have misled investors in the dark pools, saying they would be protected from predatory high-frequency trading tactics. Dark pools are private exchanges or forums for trading securities, unlike stock exchanges, they are not accessible by the investing public and are known for their lack of transparency. Barclays is to pay $70 million split evenly between the Securities and Exchange Commission (SEC) and New York state. Credit Suisse will pay a $60 million fine split between the regulators, plus an additional $24 million in disgorgement to the SEC for executing 117 million illegal sub-penny orders out of its dark pool known as “Crossfinder.”Credit Suisse will neither admit nor deny the allegations as part of the settlement.
Barclays Plc was ordered to pay an additional $150 million fine to New York State’s financial regulator after accusations that it rigged foreign exchange trading by putting the bank’s interest ahead of the clients’. A bank global electronic trading head was also terminated for reasons of foreign exchange-related misconduct. Barclays allegedly did not disclose to its clients that trades were being rejected because of a feature on its forex trading platform called “Last Look.” Last Look was used to automatically reject orders that would be unprofitable for the bank because of price swings in milliseconds-long holding periods the bank imposed after trades were placed. The bank was penalized in May of this year as well, bringing the fines against it for forex-related misconduct to $635 million.