Barclays faces scrutiny over Sachsen

Barclays has been left with an exposure worth several hundred million dollars to failed debt vehicles created by its investment banking arm amid growing scrutiny over its links to Sachsen LB, the failed German public sector bank.

The UK bank provided back-up financing to one of four structured investment vehicles set up by Barclays Capital, people familiar with the matter said, leaving it with an exposure in the “low hundreds of millions of dollars”.