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

Photo: Getty
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Zac Goldsmith has bitten off more than he can chew

In standing as an independent, Goldsmith may face the worst of both worlds. 

After just 48 years, we can announce the very late arrival of the third runway at Heathrow. Assuming, that is, that it makes its way past the legal challenge from five local councils and Greenpeace, the consultation with local residents, and the financial worries of the big airlines. And that's not counting the political struggles...

While the Times leads with the logistical headaches - "Heathrow runway may be built over motorway" is their splash, the political hurdles dominate most of this morning’s papers

"Tory rebels let fly on Heathrow" says the i's frontpage, while the FT goes for "Prominent Tories lead challenge to May on Heathrow expansion". Although Justine Greening, a May loyalist to her fingertips, has limited herself to a critical blogpost, Boris Johnson has said the project is "undeliverable" and will lead to London becoming "a city of planes". 

But May’s real headache is Zac Goldsmith, who has quit, triggering a by-election in his seat of Richmond Park, in which he will stand as an anti-Heathrow candidate.  "Heathrow forces May into Brexit by-election" is the Telegraph's splash. 

CCHQ has decided to duck out of the contest entirely, leaving Goldsmith running as the Conservative candidate in all but name, against the Liberal Democrat Sarah Olney. 

What are Goldsmith's chances? To win the seat, the Liberal Democrats would need a 19.3 per cent swing from the Conservatives - and in Witney, they got exactly that.

They will also find it easier to squeeze the third-placed Labour vote than they did in Witney, where they started the race in fourth place. They will find that task all the easier if the calls for Labour to stand aside are heeded by the party leadership. In any case, that Clive Lewis, Lisa Nandy and Jonathan Reynolds have all declared that they should will be a boost for Olney even if she does face a Labour candidate.  

The Liberal Democrats are fond of leaflets warning that their rivals “cannot win here” and thanks to Witney they have one ready made.  

Goldsmith risks having the worst of all worlds. I'm waiting to hear whether or not the Conservatives will make their resources freely available to Goldsmith, but it is hard to see how, without taking an axe to data protection laws, he can make use of Conservative VoterID or information gathered in his doomed mayoral campaign. 

But in any case, the Liberal Democrats will still be able to paint him as the Brexit candidate and the preferred choice of the pro-Heathrow Prime Minister, as he is. I think Goldsmith will find he has bitten more than he can chew this time.

This article originally appeared in today's Morning Call, your essential email covering everything you need to know about British politics and today's news. You can subscribe for free here.

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