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Barclays has suffered a $590 million loss due to a bond error.

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  • Barclays has suffered a $590 million loss due to a bond error.

Barclays has suffered a $590 million loss due to a bond error.

Barclays has suffered a $590 million loss due to a bond error.

(Reuters) - LONDON (Reuters) - Barclays (LON:BARC) reported a 450 million pound ($591.80 million) loss on mismanaged structured products on Monday, announcing that it would have to postpone a share repurchase.

Securities offered and sold by the lender's structured products division for a year had surpassed the registered amount for sale, requiring them to be purchased back at their original purchase price, according to the lender.

The 450 million pound loss was Barclays' "best estimate at this time," according to the bank, which reduced its core capital ratio to the center of its target range of 13-14 percent.

Barclays said that a planned £1 billion share purchase will be postponed until the second quarter, and that it had commissioned an independent examination of the situation. Regulators are also looking into the matter and demanding details, according to the bank.

In early trade, the bank's shares were down 3%.

Barclays' investment bank has been a standout performer for the company in recent years, helping it set a new annual profit record in 2021.

The bank seemed to be "tripping over its shoelaces," according to Shore Capital analysts.

While the present share purchase has simply been postponed, the bank's future capital dividends to shareholders may be reduced as a result of the oversight, according to the memo.

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