Barclays is at the center of a growing controversy, already reeling from a $9.5 million fine imposed by South Korea for naked short selling. The Financial Supervisory Service (FSS) fined the bank for selling stocks without borrowing them first, part of a broader crackdown on illegal trading practices that has affected other major financial institutions as well.
As if that wasn’t enough, Barclays also laid off 15 bankers and traders in New York just before the holiday season, part of a larger reduction that saw 50 employees let go last month. What has sparked outrage is the decision to deny these employees their year-end bonuses—bonuses that can amount to hundreds of thousands, if not millions of dollars. The timing of the layoffs, so close to Christmas, has been condemned as heartless.
Affected employees are considering lawsuits to claim damages exceeding $10 million, arguing that bonuses should be based on the time worked, not just employment status at the time of distribution. Legal experts, however, point out that contractual clauses may make these lawsuits difficult to win.
More drama at Barclays, weeks after South Korea fined the bank $9.5 Million for naked short selling
"More than a dozen New York-based Barclays bankers and traders were fired just before the holidays — and they received coal in their stocking by being denied bonuses, The Post… https://t.co/VQc0Xek6XZ pic.twitter.com/6s9yuIVkVT
— kristen shaughnessy (@kshaughnessy2) December 28, 2024
Sources:
https://finance.yahoo.com/news/citigroup-barclays-face-penalty-naked-160500989.html
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