How Barclays chiefs tried but failed to keep their names quiet

Barclays’ wealth unit alleged to pursue a "revenue at all costs strategy".

It has been quite a week for the overworked press and PR teams at Barclays, and the past seven days have offered a goldmine of stories for Barclays’ watchers.

The latest comedy cuts story featuring Barclays relates to its publicity shy executives and former-execs such as former CEO Bob Diamond applying - and mercifully failing – to keep their names out of a London Inter-Bank Offer Rate (LIBOR) rate-rigging court claim.

This scandal, including claims that Barclays’ traders tried to fix LIBOR to their advantage to maximise their bonuses, is toxic for Barclays’ tarnished reputation: it has already held its hands up and coughed up a fine of £290m.

So now, thanks to Mr Justice Flaux, we know that Diamond, former chief operating officer Jerry del Missier, Mark Dearlove, head of Barclays’ money-market desk and Stephen Morse, former head of compliance, are on a list of 104 bankers who wished to be given anonymity in the first UK trial with relevance to the rigging of the benchmark interest rate.

As Mr. Justice Flaux said: “The cat is out of the bag…….it wouldn’t take a rocket scientist to work out who they are.”

Trying and failing to gain anonymity in this case merely makes Diamond look even more foolish than was previously thought possible.

This, after all, is the banker who accepted Barclays’ ridiculous decision to award him 80 per cent of his maximum possible bonus in 2011, despite Barclays missing its financial targets and witnessing a 35 per cent fall in its share price in 2011.

This week started with Barclays’ press office trying to place a positive spin on Antony Jenkins, Diamond’s successor as CEO, plans to introduce a culture of ethical behaviour. He said that bankers had pursued short-term profits at the expense of the reputation of the bank: Gosh, really?

Jenkins will say more on 12 February when he reveals a strategic plan: bank speak for how to increase profits with fewer staff.

Already, several thousand Barclays’ employees face an uncertain future as the bank has kicked off a consultation process as part of a formal review of its 23,000-strong investment banking unit.

Barclays’ watchers expect between 2,000 and 3,000 staff to be axed as part of Jenkins’ strategic plan.

The week continued with news that Andrew Tinney, formerly COO of Barclays’ wealth management unit, had left the bank following allegations that he tried to keep secret a report on the how his business unit went about its business.

The report did not make for pleasant reading; surprise, surprise, it alleged that Barclays’ wealth unit pursued a "revenue at all costs strategy" and that there was a culture of fear and intimidation.

There are at least two positives from this weeks events at Barclays.

The first is that Royal Bank of Scotland - next in the LIBOR firing line as it awaits details of the level of the fine it is to pay - is unlikely to be daft enough to seek anonymity for its executives implicated in the LIBOR scandal.

The second plus for Barclays PR team is that the week is almost over.

Photograph: Getty Images

Douglas Blakey is the editor of Retail Banker International

How Jim Murphy's mistake cost Labour - and helped make Ruth Davidson

Scottish Labour's former leader's great mistake was to run away from Labour's Scottish referendum, not on it.

The strange revival of Conservative Scotland? Another poll from north of the border, this time from the Times and YouGov, shows the Tories experiencing a revival in Scotland, up to 28 per cent of the vote, enough to net seven extra seats from the SNP.

Adding to the Nationalists’ misery, according to the same poll, they would lose East Dunbartonshire to the Liberal Democrats, reducing their strength in the Commons to a still-formidable 47 seats.

It could be worse than the polls suggest, however. In the elections to the Scottish Parliament last year, parties which backed a No vote in the referendum did better in the first-past-the-post seats than the polls would have suggested – thanks to tactical voting by No voters, who backed whichever party had the best chance of beating the SNP.

The strategic insight of Ruth Davidson, the Conservative leader in Scotland, was to to recast her party as the loudest defender of the Union between Scotland and the rest of the United Kingdom. She has absorbed large chunks of that vote from the Liberal Democrats and Labour, but, paradoxically, at the Holyrood elections at least, the “Unionist coalition” she assembled helped those parties even though it cost the vote share.

The big thing to watch is not just where the parties of the Union make gains, but where they successfully form strong second-places against whoever the strongest pro-Union party is.

Davidson’s popularity and eye for a good photo opportunity – which came first is an interesting question – mean that the natural benefactor in most places will likely be the Tories.

But it could have been very different. The first politician to hit successfully upon the “last defender of the Union” routine was Ian Murray, the last Labour MP in Scotland, who squeezed both the  Liberal Democrat and Conservative vote in his seat of Edinburgh South.

His then-leader in Scotland, Jim Murphy, had a different idea. He fought the election in 2015 to the SNP’s left, with the slogan of “Whether you’re Yes, or No, the Tories have got to go”.  There were a couple of problems with that approach, as one  former staffer put it: “Firstly, the SNP weren’t going to put the Tories in, and everyone knew it. Secondly, no-one but us wanted to move on [from the referendum]”.

Then again under different leadership, this time under Kezia Dugdale, Scottish Labour once again fought a campaign explicitly to the left of the SNP, promising to increase taxation to blunt cuts devolved from Westminster, and an agnostic position on the referendum. Dugdale said she’d be open to voting to leave the United Kingdom if Britain left the European Union. Senior Scottish Labour figures flirted with the idea that the party might be neutral in a forthcoming election. Once again, the party tried to move on – but no-one else wanted to move on.

How different things might be if instead of running away from their referendum campaign, Jim Murphy had run towards it in 2015. 

Stephen Bush is special correspondent at the New Statesman. His daily briefing, Morning Call, provides a quick and essential guide to British politics.

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