Barclays to face landmark court case
Barclays Bank is the first in the UK to be taken to court over manipulating the LIBOR rate (the interbank lending rate) and the miss-selling of derivatives. A High Court judge has now put paid to any hopes by the bank that a £38m damages case - being brought against it by Guardian Care Homes - could be thrown out of court.
GCH, based in the West Midlands owns and operates 300 private care homes for the elderly across the UK. Its CEO says the impact of Barclays actions have had a 'hugely distressing impact on our staff and residents' and he's 'delighted' that the case will now be settled in court. The case centres around loan and finance deals between the two firms during 2007 and 8. GCH says they've lost money, however Barclays says GCH owes them £70m.
No date's been given as to when the case will go to trial but it's a landmark dispute, the outcome of which is likely to influence whether or not other banks will face similar charges against them from customers over alleged mis-selling.