[ by Howard Haykin ] Before things get better for Barclays, they will get worse - and worser.  Following the bank's Libor settlement, lawsuits mount, regulators show up in increasing numbers to investigate Libor, and a newly launched investigation on a different matter targets the Bank's Financial Director, or CFO.

[C-I Note: With what's gone down at BCS since announcing the $453 million Libor settlement, one has to wonder whether bank execs had any clue what to expect in the aftermath.  And why is that so - Who was advising them on public relations, and if that individual currently is nowhere to be found, perhaps the search should be extended by about 6 feet under.]

On Friday, Barclays reported that 2012 first half profits fell 76% to $752 million, after taking an accounting charge on its debt and a charge for inappropriately selling complex financial products to small businesses.  Last month, Barclays and other banks settled with British regulators over the sale interest rate swaps. New Regulatory Probes Into 2008 Capital-Raising. On Friday, Barclays said that British regulator, the FSA, was looking into the actions of a number of current and former employees, including the finance director, Chris Lucas, over the disclosure of fees related to the bank's capital-raising efforts in 2008.  This potentially targets agreements that Barclays entered into with the Qatar Investment Authority and Sumitomo Mitsui Banking Corporation of Japan, according to regulatory filings. After Lehman Brothers collapsed in 2008, Barclays tapped Middle Eastern investors for a combined £11.8 billion, or $18.6 billion, in 2 rounds of capital raising. Existing shareholders complained when Barclays turned to outside investors for a fresh injection of capital, saying their were overlooked.  Yet, Barclays is confident that it "satisfied its disclosure obligations and confirms that it will cooperate fully with the F.S.A.'s investigation." Class Actions. On Friday, Barclays disclosed that it was facing a number of class action lawsuits in the United States related to these issues, with one of the lawsuits also citing unnamed current and former member of the bank's board as defendants.  It's too early and "not practical" for Barclays to begin estimating the costs related to the legal proceedings. As it pertains to the Libor investigations, Morgan Stanley analysts have said global banks (not just Barclays) may have to pay more than a combined $20 billion in penalties and fines related to the manipulation of Libor. While dealing with the fallout, Barclays must continue its efforts to remake its management team - having already lost CEO Bob Diamond Jr., and COO Jerry del Missier, and soon Chairman Marcus Agius will step down. The bank also is conducting internal investigations into its actions, with the appointment of Anthony Salz, vice chairman of the advisory firm Rothschild.  He will conduct a review into the British bank's business practices.  A number of current and former Barclays employees may still face criminal charges related to the rate-rigging scandal. "We continue to be cautious about the environment in which we operate and will maintain the group's strong capital, leverage and liquidity positions," Barclays CFO Lucas said in a statement. For further details, go to:   [Dealbook, 7/27/12].