Barclays takes extra $1.2B hit for forex

Barclays set aside another 800 million pounds ($1.2 billion) Wednesday to cover potential settlements for alleged foreign exchange manipulation, hitting profits and reflecting its struggle to put past problems behind it. Barclays said it had now set aside 2.05 billion pounds ($3.2 billion) to cover any settlement, but offered only limited clues on how soon a deal might come. Barclays pulled out of a settlement between some authorities and six rival banks in November because it had not reached a deal with New York’s regulator. Barclays also set aside another 150 million pounds for compensating customer mis-sold insurance products in Britain, which has now cost Barclays 5.4 billion pounds and all British banks more than 26 billion pounds.

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