Barclays Investigated Over Qatar Payments

Barclays named its new CEO just hours after it emerged the Serious Fraud Office had launched an investigation into payments between the bank and Middle East investors it tapped for funds during the financial crisis.

Antony Jenkins was the head of its retail and business banking division and he will assume the chief executive post with immediate effect at a time when Barclays remains under pressure for its past activities.

The inquiry, which comes after a similar probe by the Financial Services Authority was revealed last month, is a fresh blow to the bank which is still reeling following the Libor rate-rigging scandal.

Barclays raised £11.5bn from investors in 2008, which effectively allowed it to avoid following in the footsteps of Lloyds and Royal Bank of Scotland by taking a state bailout.

The SFO is looking in particular at payments between the bank and Qatar Holding - part of sovereign wealth fund Qatar Investment Authority - which Barclays said made a £4.5bn investment.

Whereas the FSA's investigation was centred on four present and past senior staff, including finance director Chris Lucas, the SFO's probe is currently not thought to be focusing on any individuals.

A £3.5bn investment from Manchester City owner Sheikh Mansour Bin Zayed Al Nahyan - a member of Abu Dhabi's royal family - is not part of the investigation.

The SFO's move will ramp up pressure on Barclays after it already opened a criminal investigation into the Libor rate-rigging scandal.

Mr Jenkins assumes the top job at the bank as Barclays endures one of the most turbulent periods in its history amid a £290m fine by UK and US regulators for manipulating Libor, an interbank lending rate which affects mortgages and loans.

It is the only bank to have settled, though several others are also the subject of international investigations.

Mr Jenkins' retail banking background sends a clear signal that the bank wants to move away from the controversy relating to its 'casino' or investment banking past.

Barclays has released details of how much its new CEO will be paid and says the total package equates to a 25% reduction on Mr Diamond's arrangements.

From August 30 his annual salary will be £1.1m and bonus will be up to a maximum of 250% of salary.

Mr Diamond was paid a total package of £6.9m in 2011.

In a statement, Mr Jenkins said: "I am very proud to have been asked to lead Barclays, where I began my career nearly 30 years ago.

"Barclays is a strong universal bank, with many assets, including market leading businesses; talented and engaged staff; and long-standing clients and customers.

"But we have made serious mistakes in recent years and clearly failed to keep pace with our stakeholders' expectations. We have an obligation to all of those stakeholders - customers, clients, shareholders, colleagues and broader society - and a unique opportunity to restore Barclays reputation by making it the 'go to' bank in all of our chosen markets.

"That journey will take time, we have much to do, and I look forward to getting started immediately."

The bank's share price closed down 1.5% at 183p.