Barclays defends itself in key interest swap misselling suit

Tim Wallace
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BARCLAYS was yesterday gearing up to face down interest rate mis-selling claims, with the Guardian Care Homes (GCH) suit set to come before a judge on Monday.
The pre-trial hearing will see GCH present its accusations at the‚ÄąCommercial Court, while Barclays will defend itself. The judge will then decide which, if any, of the claims can progress.

The case marks a benchmark in the misselling scandal. GCH claims it was missold an interest rate swap product, while Barclays argues the business is a sophisticated and well-advised investor with full knowledge of the swap’s terms. If GCH wins the case, it could allow other similar firms to take action.

But the case has also evolved since its early stages, with GCH adding in Libor accusations as the bank has been fined by the FSA for submitting false data to the industry body that compiles the rate. GCH hopes the product will be rescinded in full as a result.

“Barclays will respond if and when appropriate and in accordance with the Court’s processes,” the bank said in a statement.

Meanwhile Barclays’ executive team changed again yesterday as the bank announced human resources boss Sally Bott has resigned after 18 months at the bank.

The bank has seen a spate of high-profile resignations this year, including that of chief executive Bob Diamond who stepped down in the wake of the Libor scandal.