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Money Talks from The Economist

Money Talks: The scandal that won’t go away

Money Talks from The Economist

The Economist

News, Business, Economy, Finance & Economics, Business News

4.41.2K Ratings

🗓️ 20 June 2017

⏱️ 17 minutes

🧾️ Download transcript

Summary

Barclays and four of its former executives have been charged with fraud, a throwback to the 2008 financial crisis when the bank raised billions from Qatari investors. But what happened nine years ago? And why have the company's actions been investigated? Also, how buyers are striking a hard deal at the Paris Air Show. And why meddling by Saudi Arabia’s Muhammad bin Salman in Aramco might scupper the world’s biggest IPO. Hosted by Simon Long.

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Transcript

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0:00.0

Attention at all passengers. You can now book your train tickets on Uber and get 10% back in Uber credits to spend on your next train journey.

0:11.0

So no excuses not to visit your in-laws this Christmas.

0:16.5

Trains now on Uber. T's and C's apply check the Uber app. Hello I'm Simon Long, the Economist's Finance and Economics Editor, and this is Money Talks.

0:30.0

Later in the programme, the Biennial Paris Air Show, and how buyers are striking a hard deal in the

0:35.8

halls at La Boishe as they cast an eye over what's new in aviation this year.

0:40.0

The exuberance of the upward swing of the aviation cycle is now over and people are thinking

0:45.9

about all the new planes being built at the moment going to cause over capacity in the industry.

0:51.7

And in Saudi Arabia the stock market

0:53.3

flotation of Aramco is meant to modernize the kingdom's economy. But will

0:57.8

meddling by the deputy crown prince get in the way? In fact if you're an

1:01.8

investor you have to worry about a Ram code being used as a kind of tool of OPEC policy.

1:07.0

But to start, Barclays Bank and four of its former executives were on Tuesday charged with fraud,

1:16.4

a result of allegations about their actions during the financial crisis in 2008.

1:21.9

The case brought by the UK Serious Fraud Office relates to the billions the bank raised

1:26.6

from investors in the Gulf state of Gata, designed to help it avoid the British government

1:30.5

bailout to which some of its peers had to resort.

1:34.2

What exactly happened nine years ago?

1:36.6

And why have the company's actions been investigated?

1:39.8

I'm joined by the economist's banking editor Patrick Lane.

1:43.4

Patrick is it possible to outline what these charges are?

1:47.0

As you say, Barkie's raised an awful lot of money in June and October 2008

1:50.9

from a range of investors. A good chunk of that money came from Qatar. Now at the same

...

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