Financial regulators in the UK have launched investigations into the allegations that Barclays bank relied upon suspicious loans to avoid taking government cash during the peak of the financial crisis.

A report indicated that UK regulators have launched investigations to determine if the bank lent money to Qatar to invest back into the bank before it had to prove that it is capable for staying independent and does not require government bailout.

The Serious Fraud Office and the main City regulator are looking at suspicious loans given to the government of Qatar by the bank at that time. The loan could underwrite the investment by the country into the bank and the result of the analysis of the bank's financial position would have been different.

The latest scandal has sparked a new controversy and made things difficult for Barclays boss Anthony Jenkins, who is working to clean the bank's image in the UK and the global financial markets. The bank was earlier accused of trying to rig the Libor rate. It had to lose several top executives, $5 billion of market value and is faced a government inquiry in the case. The bank is also facing a fine of a record 290 million pounds in the case.