The Bank of England’s Prudential Regulation Authority is investigating whether Barclays traders misrepresented illiquid private credit loans to understate risk. An insider complaint alleges the bank breached PRA rules by allocating total return swaps referencing these loans to its trading book. This comes as banks have poured hundreds of billions into the private credit sector, fueling lending to riskier firms.
Meanwhile, France faces political turmoil after widespread riots, and the US has warned Europe against restricting Starlink. In other news, Anthropic pledges 5% of shares to a public benefit fund, and global commercial real estate recovery is threatened by rising rates. David Miliband discusses the International Rescue Committee’s challenges and hints at a UK political return.
Source: Financial Times Companies · Summarized by HeadlinesBriefing