Clients, products and business practices (CPBP)
CPBP contributes to about 83% of overall losses in commercial line of business for Barclays.
This specific case took place in the UK and resulted in estimated $2.6 billion losses (96% of all
Barclays’s CPBP losses) payable to small business owners who were mis-sold complex interest
rate hedging products (IRHPs). In other words, Barclays has sold interest rate swaps to non-
sophisticated investors, without disclosing the exit costs and properly explaining the risks.
Furthermore, Barclays has advised clients on non-suitable sales and over-hedged some
investments.
Exposure: Commercial Bank
• Type of losses:
1. Financial
2. Reputational
