Choice number one was to cut bonuses for a second year in a row, lose all its investment bankers in the US, and turn the place into a Gold’s Gym. Choice number two was to increase bonuses and stop the mass exodus. After many a sleepless night, CEO Antony Jenkins decided to go with the latter but lest anyone be getting ideas, this was a one time thing. Next year he won’t worry about placating anyone, mass exodus or not, and if you don’t like that you can, as his predecessor’s daughter would say, HHD. Read more »
Reuters reports that for the second year in a row, Barclays Chief Executive Officer Antony Jenkins has turned down the bonus offered to him. This time around, he said that it would be inappropriate to take the money, in light of “the bank’s hefty bill to pay for past problems.” All of this probably comes as a surprise to another CEO, whose name shall not be mentioned, who thought they agreed to put up a united front re: bonus accepting in the face of legal fees, be they Libor, whale, mortgage, or alternate side parking ticket-related, and who at this moment is angrily dictating an email thanking Jenkins for making him look like a Grade A Jackass. Read more »
Nine months ago, Barclays CEO Antony Jenkins brought in former Financial Services Authority chief Hector Sants to do something about the bank’s less-than-sterling reputation. But Hector Sants could not go back in time and keep Barclays from committing the mistake he knew it was making, and so, nine months in, he needs a good, long break. Read more »
- It has spent the last few years comprehensively defrauding customers, manipulating interest rates, and making false disclosures about its financial situation, and
- Its new-ish CEO is working on a “review … to assess if the bank’s businesses are ethical and not just profitable.”
Hey that’s super. And definitely some of the people who were ripping off customers have been fired, so your odds are … improving?
In my more cynical moods I posit that there are three reasons to do business with a bank, corresponding to three relationships that you can have with the bank:
- Client: You trust them not to rip you off.
- Counterparty: You (think that you) are an eyes-open counterparty; they are trying to rip you off and you are trying to rip them off and you hope that you’re smart enough to survive.
- Co-conspirator: You’re working together to rip someone else off.
Most – not all – of what is scandalous in finance comes from one or both parties misunderstanding which relationship they’re in.1
The co-conspirator model is in some sense the most attractive for the bank. Read more »
After spending his first six months on the job speaking about cultural change at scandal-plagued Barclays PLC, Chief Executive Officer Antony Jenkins on Tuesday will unveil a plan that is expected to leave the bank’s strategy largely intact, according to people briefed on the matter.
But wait! Barclays can change in all the ways that it thinks matter to you and the British government, if not to its shareholders. Read more »
Barclays CEO Promises To Clear Out His Desk In Hypothetical Scenario In Which Bank Decides To Start Engaging In Rampant Fraud AgainBy Bess Levin
Mr. Jenkins and the firm’s chairman, David Walker, told politicians on Tuesday that they were prioritizing ethics and reducing risky trading activity, adding that they would take responsibility if future problems were discovered at the bank. The Barclays’ chief, who agreed to forgo his bonus in response to the series of scandals that have hit Barclays in recent years, said he would resign if another scandal was uncovered while he was leading the bank. “The chief executive is responsible for what happens during their tenure and when incidents happen the price needs to be paid and I believe were I to find myself in that position I would do the right thing,” Mr. Jenkins said on Tuesday. When politicians asked Mr. Jenkins if he was eradicating the culture that he inherited from his predecessor Robert E. Diamond Jr., Barclays’ new chief said he was indeed “shredding that legacy” of sometimes being “too self-centered and too aggressive.” [Dealbook, related]