Barclays Withdraws from Israeli Bond Auctions

Barclays Bank has decided to maintain its role as a primary dealer in Israeli government bond auctions, despite facing pressure from pro-Palestinian activists advocating for a boycott. According to the Financial Times, the bank had considered withdrawing from the market but ultimately chose to continue its support for Israel, joining other major international banks like Goldman Sachs and JPMorgan Chase in facilitating the sale of Israeli debt. Israeli officials welcomed Barclays' decision, with Yali Rothenberg, Israel’s accountant general, emphasizing the importance of global financial institutions standing by Israel's right to self-defense. Rothenberg's comments reflect a broader sentiment among Israeli leaders who view the support of foreign banks as crucial during a time of heightened conflict and financial strain. The bank has faced significant backlash from activists, particularly during its annual shareholder meeting in May and through protests at its London branches. Critics have targeted Barclays for its financial ties to defense firms that supply the Israeli military, raising concerns about the ethical implications of such relationships. In response, Barclays clarified that it does not invest its own funds in these companies but rather facilitates transactions for clients. In its communications, Barclays has stated that it would sever ties with any entities involved in the production of cluster bombs, addressing specific allegations regarding its involvement with Elbit, an Israeli defense manufacturer. As Israel continues to navigate a challenging financial landscape exacerbated by ongoing conflict, Barclays' commitment to the country remains a focal point of both support and criticism.