Barclays Group  

Barclays deal branded 'horrible' by former chief

He explained how the services fee for the advisory agreement was calculated based on the fee the bank was paying to other investors, adding the amount was: "The difference between 1.5 per cent and whatever we agreed to pay them.

"I should also say at this point, about my state of mind, I was greatly relieved. Finally we had full engagement from group legal - I could relax.

"The advisory agreement was entered into as a mechanism to pay the Qataris additional fees.

"We are not paying additional fees, we are entering into an advisory services agreement which was consistent with the legal advice that we have been party to.

"Do I really feel we should be paying the Qataris more than we are paying the others? No I don't.

"I felt uncomfortable about it."

Boath is the former Barclays Capital head of European Financial Institutions Group.

Varley, of Notting Hill, Jenkins, of Malibu, California, Kalaris, of Knightsbridge, and Boath, of Henley-on-Thames, Oxfordshire, deny fraud by false representation, between 1 May 2008 and 31 August 2008.

Varley and Jenkins deny a second like charge of fraud by false representation, between 1 September 2008 and 30 November 2008.

The trial continues.