Qatar could turn cold on Barclays. The sovereign fund isn't publicity shy, but a probe by the UK's Serious Fraud Office into its financial links with the British bank has forced it into an unwelcome spotlight. Whatever the outcome of the investigation, in a region where rich rulers are fiercely protective of their reputations, there is a chance that Qatar might seek to distance itself from the bank.
The probe is a threat to what has been so far a four-year win-win, relationship. A costly capital injection led by Qatar spared the UK bank from a state bailout in 2008. Yet the Libor rate-rigging scandal and the latest probe have been a dampener. The SFO picks up from an investigation by the UK Financial Services Authority into disclosure of fees paid to Qatar in return for advising the bank's Middle East business.
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