Top executive suppressed report damning Barclays
Bank boss leaves after hiding criticism of 'revenue at all costs' strategy at US Wealth arm
James Moore is the Independent's Associate Business Editor and writes the Outlook City comment column from Tuesday to Friday. He also has a keen interest in disability issues and when not attempting to further injure himself playing wheelchair basketball.
Monday 21 January 2013
Barclays was hit by further damaging revelations about the culture that was allowed to flourish in certain parts of the bank yesterday after it emerged that a senior executive had suppressed a damaging report into Barclays Wealth in America.
The report, compiled by consultancy firm Genesis Ventures, was said by a Sunday newspaper to have sharply criticised a "revenue at all costs" strategy and a "culture that is high-risk and actively hostile to compliance".
Management was said to have "ruled with an iron fist", acting to remove "any intervention from those who speak up in opposition". Genesis Ventures' report was initially only supplied to Andrew Tinney, chief operating officer of the private investment division, and he suppressed it. His departure was announced to staff in an email a week ago, and it is understood he did not receive a pay-off.
The revelations come days after new chief executive Antony Jenkins wrote to all 140,000 staff members, telling them that if they didn't buy into his clean-up plan, they would be kicked out. He is due to unveil a new strategy in February, which will see the bank pulling out of more controversial businesses such as tax planning. Staff at Canary Wharf are said to be nervously awaiting a fresh round of lay-offs.
The revelations follow The Independent's exclusive interview with a whistleblower last July in which he talked of a culture of fear at the investment banking division. The Independent has since talked to several other former members of staff at the division who told similar stories.
One said yesterday: "This backs up what I have been saying. The attitude and ethics of the big guys up top more than filtered to the bottom."
Any rule breaches brought to light by such a report would be seized on by regulators who fined the bank £290m after its traders were found to have attempted to manipulate Libor interest rates last year.
Last night, however, people close to the bank stressed Mr Tinney's departure was a reflection of the reforms being pushed through by Mr Jenkins, and the report showed that he was serious. A Barclays spokesman said Mr Jenkins had "acknowledged clearly last week" that transformation of the bank's culture was "imperative".
"Independent reports, like the one commissioned in early 2012 for Barclays Wealth in America, are intended to identify areas where change is required and to recommend remedial steps. These types of exercise never result in comfortable reading, but we have been, and will, remain absolutely committed to taking the necessary steps to address the issues raised," he said.
- 1 The difference between a psychopath and a sociopath
- 2 It won’t work, Jeremy: The Health Secretary has lost the confidence of the medical profession in his attempt to reform the NHS
- 3 Kim Jong-un awarded global statesmanship prize by Indonesia
- 4 Bobbi Kristina Brown memorial service marred as bitter family row erupts in public
- 5 Dutch King Willem-Alexander declares the end of the welfare state
Labour rallies behind Flint as deputy leader to offset a Corbyn win
Kim Jong-un awarded global statesmanship prize by Indonesia
Bobbi Kristina Brown memorial service marred as bitter family row erupts in public
Dutch King Willem-Alexander declares the end of the welfare state
RuPaul interview: The drag star on being inspired by Bowie, never fitting in, and saying the first thing that comes into your head
Yvette Cooper: Our choice is years of Tory rule under Jeremy Corbyn – or a return to a Labour government
Is Britain really full up? Are migrants taking our jobs? Leading academic answers the most common anti-immigration claims
Calais Migrant Crisis: Deputy Mayor of Calais labels Cameron's use of 'swarm' as 'racist' and 'ignorant'
Labour leadership: New poll shows party is now even 'less electable' than under Ed Miliband
While we fixate on Calais, the Home Office is quietly deporting dozens of migrants on 'ghost flights'
Calais crisis: The seven claims made about the migrants - and the reality
iJobs Money & Business
£30000 - £35000 per annum: Recruitment Genius: This is an exciting opportunity...
£13000 - £15000 per annum: Recruitment Genius: Are you passionate about custom...
£22000 - £25000 per annum: Recruitment Genius: Main purpose: Under the directi...
£35000 - £37000 per annum + benefits : Ashdown Group: Contracts Manager - City...