Barclays could reportedly face as much as £1.2 billion more in legal costs and fines to settle claims it falsified documents and misrepresented benefits offered to clients using its dark pool trading platform.
The bank has already set aside more than £1.2 billion in the second quarter to cover the cost of mis-selling payment protection insurance and other legacy matters.
It has turned to Sullivan & Cromwell to defend it against fraud allegations in the US.
Additionally, the bank could also face a further £700 million fine to fight an industry-wide investigation into manipulation of the $5.3trillion-a-day currency trading market.
At the same time, the bank is expected to face a £300 million charge in the second half of the year to pay off customers who were mis-sold products to help them hedge interest rates.
Last month, New York’s top securities regulator Eric Schneiderman has filed a fraud lawsuit against Barclays for allegedly favoring high-speed traders using its dark pool trading venue.
Schneiderman claimed that the bank was engaged in a flagrant pattern of fraud, deception and dishonesty with Barclays clients and the investing public.
Barclays’ chief executive, Antony Jenkins, said: "Where there is a case to answer, we will take responsibility, accept the sanctions, learn the lessons and move on. I will not tolerate behavior that is inconsistent with our purpose and values."
The bank said: "The complaint is based on clear and substantial factual errors. Fundamentally, the complaint fails to identify any fraud — establishing no material misstatements, no identified victims, and no actual harm."