Barclays reveals currency trading investigation

A Barclays bank branch is seen in central London, Monday Feb. 9, 2009. Barclays PLC said Monday its 2008 net profit fell only 1 percent as a one-off gain from its cut-price purchase of the North American operations of Lehman Brothers helped shore up its finances. However, Britain's third largest bank by assets warned that further asset writedowns _ on top of the massive 8.1 billion pounds ($11.9 billion) booked for 2008 _ were likely and said executive directors would not be getting any bonuses. (AP Photo/Lefteris Pitarakis)

Barclays, Britain’s second-biggest bank, revealed it is the target of an international investigation over possible manipulation of currency trading as it reported a drop in profits.

The bank says authorities are looking into foreign currency trading in multiple markets.

It also revealed that the Financial Conduct Authority has warned the bank it faces a fine of 50 million pounds ($80 million) for failing to disclose it had entered into advisory agreements with Qatar Holdings LLC before it raised money from Qatari investors in 2008. The bank says it contests the authority’s finding that the primary purpose of the agreements, which totaled 332 million pounds over five years, was to make additional payments for Qatari participation in the capital raising.

Barclays reported net income fell 26 percent to 2.8 billion pounds.