Barclays is facing a High Court legal battle over cash held in accounts belonging to collapsed shadow bank Market Financial Solutions. Administrators AlixPartners have filed a case to force Barclays to hand over money they believe is owed to the business, while other administrators Begbies Traynor and Coots & Boots claim Barclays refused to transfer credit balances, citing fraud allegations and potential claims over the funds. Barclays, which provided bank accounts and lent money to MFS, has a total exposure of around £500 million but expects to recover more than 50 percent. MFS collapsed into administration in February amid allegations that at least £1.3 billion was misappropriated, with founder Paresh Raja accused of receiving over £408 million in personal accounts, which he denies. Grant Thornton previously obtained a court order forcing Barclays to release £21.1 million from one MFS vehicle account.
Barclays PLCBarclays faces High Court legal battle over funds from collapsed MFS, with fraud allegations and potential claims.