Update: Market Chatter: Barclays Faces BoE Scrutiny Over Alleged Misrepresentation of Private Credit Risks

06:10 AM EDT, 10/19/2026 (MT Newswires) -- (Updates with Barclays' response in the third paragraph.) Barclays (BCS) is facing scrutiny from the Bank of England over allegations that traders misclassified derivatives linked to illiquid private credit loans, potentially understating risks and reducing capital requirements, the Financial Times reported Monday, citing unnamed sources. The probe follows an insider complaint to the Prudential Regulation Authority earlier this year, the report said. Barclays traders reportedly argued that back-to-back swaps made the positions tradable despite the underlying loans being illiquid. "Barclays takes seriously its regulatory obligations in markets where it operates. Barclays does not comment on its interactions with regulators," a company spokesperson told MT Newswires in an email. The BoE declined to comment when reached by MT Newswires. (Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)