Barclays accused of deceiving investors

Eric Schneiderman said Barclays had engaged in “a systematic pattern of fraud and deceit”
Eric Schneiderman said Barclays had engaged in “a systematic pattern of fraud and deceit”
JOHN MINCHILLO/AP

Barclays Bank was last night charged with “fraud and deceit” in its dealings with investors by New York’s attorney-general.

Eric Schneiderman accused the bank of operating a “dark pool” to the disadvantage of its clients and for the benefit of high-frequency traders.

“The facts alleged in our complaint show that Barclays demonstrated a disturbing disregard for its investors in a systematic pattern of fraud and deceit,” Mr Schneiderman said. “Barclays grew its dark pool by telling investors they were diving into safe waters. According to the lawsuit, Barclays’ dark pool was full of predators — there at Barclays’ invitation.”

The attorney-general’s complaint alleges that Barclays dramatically increased the size of its dark pool through a series of false statements to clients and investors about how,