The Bank of England is preparing to reform the procedures of controls for private derivatives. After Barclays, one of the main players in the financial sector, was subjected to further attacks of security after having problems with private derivatives. The information provided by the Financial Times indicates that Barclays has used derivatives as marketing strategies and reserve management tools, but they could be interpreted as a way to increase its financial performance.

The problem is that these derivatives, even though they seemed less risky, were registered incorrectly in the right category, creating an error in valuation. This error could mean that Barclays was not maintaining the capital necessary to protect against potential losses, making the organization more profitable. This number is much higher than 15% of Barclays' global exposure, highlighting the gravity of the problem.

The decision of Barclays to strengthen its position in the private credit sector was rejected by the Bank of England, which stated that the procedure of controls was in accordance with accounting and regulatory norms. However, the Bank of England insisted on the need for a thorough revision of the control procedure to ensure the correctness of the records. It is important to note that this revision may lead to significant changes in current control processes, but it will not change the base of credit or the structure of Barclays.

The Bank of England stated that Barclays should provide better understanding of the procedures of controls and specific guidelines to avoid similar incidents in the future. The fact that Barclays had to face similar problems with private derivatives is an indication of the importance of keeping a rigorous control over these financial instruments. The control process must be entrusted to competent professionals, and weak processes can lead to important errors that can damage a company's financial performance.

In conclusion, while Barclays has refused the invitation for a review, the Bank of England continues to worry about how Barclays behaves towards private derivatives. This revision may be a step forward in managing these risks and ensuring that the procedures of controls are adequate to protect companies from the development of similar incidents.