Barclays' debt sale error due to 'material weakness' in internal controls

Barclays PLC said it found a "material weakness" in its internal controls, as it refiled its financial statements to U.S. regulators in the wake of a blunder involving an overissuance of securities that led to the delay of a planned share buyback program.

The identified lapse "relates to a weakness in controls over the identification of external regulatory limits related to securities issuance and monitoring against these limits," the U.K.-based banking group said in a May 23 release. The lender disclosed in March that securities offered and sold under its U.S. shelf registration statement exceeded the registered amount by about $15.2 billion.

Barclays said it booked a £540 million cumulative provision in the first quarter over the matter but noted that the final cost still depended on a combination of several factors, including market conditions.

The group on May 24 commenced the postponed £1 billion buyback program after refiling the accounts. The buyback, which is aimed at reducing Barclays' share capital, is set to end no later than Sept. 30.