The strangest bank of all

Barclays first defied the Treasury by refusing to take its money. Now it won’t join the Chancellor’s

The gathering of Barclays investors at the Queen Elizabeth II Conference Centre in Westminster on 23 April was inevitably a strange affair. At one and the same time, the bank has managed both to infuriate its investors and to win their admiration.

The patrician leadership of the bank, headed by the former dealmaker Marcus Agius (married to a Rothschild) and John Varley (who married into one of the Barclays-founding Quaker families), has fought with tooth and claw, as the credit crisis descended on the financial system, to keep HM Treasury off its back. While Lloyds Banking Group (the old Lloyds TSB plus HBOS) and Royal Bank of Scotland (RBS) have allowed themselves to fall under direct rule from UK ­Financial Investments – the arm of government set up to own shares in the semi-nationalised banks – Barclays chose a different direction. It has been a case of taking money from anyone, at any price, as long as the interference from Labour and Whitehall can be kept at bay.

The anger from long-term Barclays shareholders (the pension funds and insurance giants who dominate investment decisions in the City of London) stems from last October’s decision by Barclays to eschew an injection of cash from HMG to solidify its crumbling balance sheet, and to look overseas instead. Using a rum collection of intermediaries, including the glamorous ­financier Amanda Staveley (a former girlfriend of the Duke of York), it secured for itself £7.3bn of new capital from the ruling royals in the Gulf statelets of Abu Dhabi and Qatar. It paid an enormous price for this injection of funds, some 14 per cent at a time when official interest rates are close to zero, and in effect gave away 15.5 per cent of the bank to new investors without first asking the permission of the existing owners, the long-term City investors. It was this abandonment of so called “pre-emption rights” that cast Agius and Varley as the City bad boys who should be excluded from class. So great was the anger that the Barclays board had to reopen the fundraising, offering shares to existing investors on similar terms and promising that the bank’s directors would submit their appointment to an annual vote of approval by shareholders. This was a big extension of normal shareholder democracy.

So why did Barclays go to so much trouble to preserve its independence? It was partly about pride and partly about ambition. Barclays is unique among the big names on the high street. The bank, which traces its history on Lombard Street back to the late 17th century, was formed as a result of a series of mergers a century later, which brought together banks from the English regions controlled by wealthy Quaker families.

Even though the founders have very few shares in the modern bank, somehow over the centuries, members of the extended families have managed to pop up in the top jobs. John Varley, the quintessential English solicitor who currently holds the job of chief executive, just so happens to be married to Carolyn Thorn Pease, a descendent of one of the founding Barclays dyn­asties. It used to be said that in the chairman’s ­office at Barclays, there was a secret register that monitored the progress of family members through the bank and fast-tracked their progress. Whatever the truth, this legacy – in which Quaker names such as Tuke, Pease and Buxton, crop up over the years – is decidedly different from that of the other high street banks.

Few bankers are so gripped by history as Varley. His predecessors were forced to retreat from apartheid South Africa in 1986, where Barclays was among the biggest players, by a combination of sanctions and shareholder activism. But when the opportunity to return presented itself nearly two decades later, Varley grabbed it with both hands, spending £2.9bn in 2005 on buying Absa, the biggest retail bank in the country. The honour of his predecessors had been restored.

The second big difference and reason for Barclays wanting to stay independent is its embrace of a US-style investment banking culture. Much of the current debate about the future of banking has been whether there should be new rules that prevent old-style Captain Mainwaring bankers joining up with the “casino” bankers who caused the credit crunch. More than any other UK bank, Barclays is a combination of both.

Barclays Capital, run by Bob Diamond who pocketed a £21m salary in 2007, embraced casino banking with great zeal, turning BarCap into a powerhouse of the debt and bond markets. Indeed, it is one of the biggest players in the securitised debt market – the slicing, dicing and packaging of loans at the heart of the credit crisis. This involvement in securitised debt, including sub-prime mortgages, has cast a large shadow over Barclays, which always claims that the mortgage debt it holds is of a “better vintage” than that of its rivals.

But Diamond’s ambitions are without limit and he has seen the credit crunch as an opportunity rather than a drag on the bank’s activities. When Lehman Brothers went under last September, BarCap saw it as an opportunity and moved to buy up Lehman’s New York staff and offices at a knockdown price.

In more recent days, Barclays has been studying whether it, like RBS and Lloyds, should become part of Alistair Darling’s insurance plan for banks: the “asset protection scheme”. Under this insurance policy, the Treasury essentially takes the toxic or bad debts off bank balance sheets in exchange for a premium. Barclays looked carefully at the plan and decided that, if it did so, it would lose the freedom to lend to whom it wants, and perhaps, as importantly, set its own wages and bonuses for staff. So it has decided to stay out and soldier on.

Once again, it has chosen to sell assets to raise the capital it needs to stay independent – on this occasion iShares, part of its investment arm. It will almost certainly mean higher losses in the short term since, unlike the banks with insured toxic debts, Barclays will have to take the direct hit through its profit and loss account.

No one wants to see the return of the bad old days when bankers ran riot. But it is hard not to have a sneaking admiration for Agius, Varley and Diamond. They place the independence of their bank above all else, and are determined not to cast off three centuries of history. It’s a bold gamble that sets Barclays apart from the crowd.

Alex Brummer is City editor of the Daily Mail

This article first appeared in the 27 April 2009 issue of the New Statesman, Rise of the Geek

Mike Lombardo via @moreMiLo
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“I was almost brainwashed by him”: How male YouTubers get away with preying on young fans

A multitude of YouTube stars have been accused of taking advantage of young fans, but little is being done to tackle the problem.

In June, a 24-year-old YouTuber named Austin Jones was charged with two counts of producing images of child abuse. Court documents allege that the internet personality – who has more than half a million subscribers to his YouTube channel – solicited explicit videos from two of his young female fans. According to the criminal complaint, Jones asked one of the teenage girls – known only as Victim B – to dance for him, and said: “Bounce again and smile at the camera while you bounce. And while you bounce, say ‘I’m only 14’ 3 times throughout the video.” Jones has been released on bail and is awaiting trial. Jones’ attorney Gerardo Solon Gutierrez points out that the singer is “innocent until proven guilty”.

A few weeks later, a YouTuber known as Durte Dom was accused of filming a 15-year-old girl from behind while she danced at a party, without her consent. “He filmed my ass dancing,” the girl wrote anonymously on Twitter. Dom responded to the allegations via the social network, writing: “the party was 18+, the girl snuck in. don't fool yourself.” He says he will now “start having people sign release forms” before he films them.

These allegations are not isolated. In 2014, a Tumblr user called Olga accused the YouTuber Tom Milsom of coercing her into sexual activities when she was 15 and he was 21. Milsom did not comment publicly on the accusations and was never charged. Only a month earlier, a YouTube musician, Mike Lombardo, was jailed for five years on child pornography charges after soliciting explicit photographs and videos from 11 of his underage fans. 

These events set off a series of other allegations. Vlogger Alex Day admitted to having “manipulative relationships with women” after 14 women and teenage girls accused him of manipulation and abuse. One anonymous 15-year-old wrote on Tumblr that Day had sex with her knowing she was underage and “didn’t listen to me when I asked to stop”. Day denied any sexual relations with underage girls, and none of his alleged victims pressed charges. Another YouTuber, Ed Blann, admitted in a now-deleted Tumblr post that he “manipulated” an of-age fan into sex even after he was “repeatedly told to stop”. Like Day, Blann never faced any charges, but, also like Day, he apologised for his actions.  

 In September 2014, a 19-year-old woman accused the YouTube prankster Sam Pepper of raping her, and another woman filed a police report accusing him of rape. Pepper denied the accusations, was never arrested and charges were never filed. He did, however, apologise for YouTube pranks that included pinching women’s behinds while wearing a fake hand.

A Tumblr post set up to track emotional and sexual abuse in the YouTube community to date features allegations against 43 YouTubers.

***

Social media revolutionised the concept of celebrity – and celebrity-fan interactions. YouTubers are both incredibly adored and incredibly accessible. Products they design sell out overnight and their live events fill arenas. At the same time, fans are often just a few clicks away from engaging in private, one-on-one conversations with their heroes.

“I feel like I was kind of blinded to the whole situation, like I was almost brainwashed by him,” says Ashley LaPrade, a 16-year-old who claims that when she was 15, Austin Jones coerced her into creating sexualised videos on the messaging app Kik. She posted screenshots of their conversations on social media after the news of Jones’s arrest broke.

“It was kind of casual at first and he asked me to model his merchandise for him... so I did. I took a couple pictures and I’m a gymnast so I was trying to like impress him and I did like splits and stuff,” she says. She alleges that Jones asked her to film herself from behind while bending down or dancing. “I didn't want to upset him and make him not like me,” she says.

LaPrade explains that as a young 15-year-old fan she “looked up” to Jones and was initially excited by his interest in her. After she began to feel uncomfortable with his requests, they stopped talking, but she continued to listen to his music and go to his concerts. She says that she only realised the severity of his actions after his arrest.

Many young fans like Ashley are initially unable to comprehend that anything wrong – legally or morally – has happened to them. Neesey Pathan is a 20-year-old student and YouTuber who claims she was sexually harassed by Sam Pepper when she was 15. In 2014, she posted a YouTube video of her allegations, showing screenshots of alleged conversations with Pepper in which he asks her to “do a naked a dance” and show him her cleavage.

“As a young naïve 15-year old girl, I just wanted to keep talking to him because I was a huge fan,” Neesey tells me. “When he started to get inappropriate with me, at the time that made me feel uncomfortable but I didn’t understand how serious that was, because of how young I was.

“I wanted him to stop being inappropriate with me but I didn't want him to stop speaking to me.”

***

Since the concept of celebrity was invented, nefarious individuals have used their fame to manipulate and take sexual advantage of young fans. In the 1970s, Lori Mattix was a “baby groupie” to musicians – alleging in a Thrillist article that she lost her virginity to David Bowie aged just 14. When the guitarist Ted Nugent couldn’t legally marry 17-year-old Pele Massa, he became her guardian instead. Anna Garcia met Prince aged 15 and began a relationship with him aged 17. “I guess it’s kind of a dream to a young girl of 17,” she said in the Nineties. “You can be influenced very easily and stuff like that because he’s 12-13 years older than me.”

It now seems as though a slew of YouTubers have taken advantage of this imbalanced fan-creator relationship, and have deliberately exploited the naivety of their young fans. Ashley and Neesey both claim they were emotionally manipulated.

“I think I put him on this pedestal, which put him in a position to very easily manipulate me and get what he wanted,” says Neesey. “I was just so excited to get to speak to someone who I had looked up to for a long time.”

Ashley claims that when she wouldn’t film increasingly explicit videos for Jones, he treated her coldly. “He went on about how he was in a bad mood now and he didn’t want to talk any more,” she says. “If I did something wrong to him, like if I didn’t blow a kiss or something, then he would make me redo [the video].”

In 2015, Jones was first accused of asking his underage fans to film themselves twerking. In a video entitled “Setting The Record Straight”, he admitted to asking for the twerking videos and said he became suicidal after this news became public. “I’m a pretty insecure person... I began researching different suicide methods. I started planning my suicide. It’s something I was very, very serious about,” he says in the video. 

“A lot of times when we were talking he was talking about how he was going to therapy so I kind of felt bad for him and that’s why I didn't really say anything [to the authorities],” says Ashley.

The American National Domestic Violence Hotline outlines on its website that threatening suicide can be a form of emotional abuse. “If your partner regularly threatens suicide, particularly whenever you’re not doing something he or she wants you to do, or when you’re trying to leave the relationship... this is a form of emotional abuse.”

According to Neesey’s screenshots, Pepper flippantly mentioned he was “suicidal” when she refused to show him her breasts. In Olga’s blogpost about Tom Milsom, she alleges: “he’d like sob and cut himself in front of me he threatened weird suicidal shit a lot”.

“Obviously, if someone is saying to you that they're suicidal, you want to help them, because obviously they don't mean it but as a young person you think they do,” explains Neesey. “And you don't want to be held responsible for them hurting themselves and you maybe care about this person because you’ve been watching them for so long. So you’re manipulated into carrying on contact with them because if you don’t, what will happen...” 

***

To date, Lombardo is the only YouTuber who has ever been jailed for sexually abusing his fans. There are a multitude of reasons for this. Some victims are too afraid to press charges, fearing backlash from a YouTuber’s fandom. Many victims are unable to see the severity of their abuse until they are older. More still are manipulated into silence. Parents can’t comprehend YouTube stardom, and fail to understand what is happening in their children’s lives. Some victims simply don’t know which authorities to turn to.

“I'm kind of steaming about this whole issue,” says Michelle LaPrade, Ashley’s mother. “I can’t even look at a picture of the guy. It makes me want to punch him.”

At the time, Ashley never told her mother about Jones’s behaviour, but Michelle overheard conversations about it between her daughter and her friends. “I feel like a bad mother. I never even really investigated it. Because I know girls and their drama and you know, [they] overreact sometimes.”

After Jones’s arrest, Michelle wanted to report his interactions with Ashley to the authorities, but she found her local police department unhelpful. “I don't know who to turn to,” she says.

Many more victims are unaware that a crime has even occurred. “When I was 15 I didn't see how problematic it was,” says Neesey. “I knew it was a bit strange, and I did feel uncomfortable, but I didn't realise that he was actually sort of committing a crime in terms of asking a minor, as an adult, to do these things...

“It wouldn't even have crossed my mind to go to the police.”

While the UK has the large-scale Operation Yewtree into sexual abuse by celebrities, there is no equivalent for YouTube. Despite the multitude of allegations spanning half a decade, there is no single helpline or dedicated investigation into YouTube abuse. When questioned on this, a Home Office spokesperson said:

“We cannot allow social media platforms to be looked upon as a safe space for predators to target our children and share indecent images. It is vital that communication service providers have easily identifiable reporting systems for people to flag inappropriate or illegal content – and that they are clear about what is and isn’t allowed on their sites.”

A YouTube spokesperson said: “We have clear policies against harassment and we enforce these policies by removing both flagged content and comments that break our rules as well as terminating the accounts of repeat offenders.”

Sam Pepper is still on YouTube, where his channel has over two million subscribers. Alex Day returned to YouTube in December 2015, and now has over 80,000 subscribers. Austin Jones’s YouTube channel remains live, though he is not allowed to use social media before his trial.

***

“I feel like it is really hard to be taken seriously,” says Ashley. On social media, people are prone to victim-blaming Ashley and other alleged victims, saying that they should have stopped replying to the YouTubers harassing them. “Yeah, we did send stuff back but it was... we were being pressured into it and we didn't want to upset him or anything like that,” Ashley says. Her mother tells me she is glad Ashley “took the high ground” in not sending overtly sexual videos to Jones.

Unsure which authorities to speak to, many victims turn to social media to discuss their abuse. Accusations play out on Tumblr, Twitter and YouTube itself. Ashley tweeted screenshots of her interactions with Jones, while Neesey created two videos about her conversations with Pepper. Although this is an effective, and unprecedented, way for victims to get their voices heard, many online are distrustful of complaints that didn’t go through the authorities. Many more leave misogynistic and hateful comments.

“People will just be absolutely horrible to you and call you demeaning things... I got called a flirt, I got told it was all my fault because I continued speaking to him...” says Neesey, of the reaction to her videos. “I think that's a lot of the reason why people sometimes don’t come forward, because they don't want to go through all that stress again. They’ve already dealt with the situation; why would they want to deal with the stress of people being horrible to them about it?”

Some commenters criticise Neesey and other victims who have made YouTube videos and claim they were doing so for attention. “No one in their right mind would do it for attention because the attention you get is negative,” Neesey says. “I honestly don’t believe that someone would sit down and accuse someone of doing something if they didn’t mean it. So I really think it should be taken seriously.”

Whether it makes sense to those outside of the community or not, many victims' first recourse is social media, not the police or authorities. The accusations about Durte Dom – the YouTuber who allegedly filmed a 15-year-old dancing – were publicised by another YouTuber, Elijah Daniel, on his Twitter page.

Damon Fizzy is a YouTuber who called out Austin Jones after the initial accusations in 2015, and continues to do so on Twitter now. Although he agreed to speak with me, he was unable to find time to do so over a series of weeks.

For many YouTubers and their victims, social media is more important that the traditional media. Perhaps this makes sense – when the Mail Online covered the arrest of Lombardo, the YouTuber who solicited child abuse images from 11 underage fans, they added inverted commas around the word “star” in their headline. If the media and the authorities can’t take YouTube seriously, how seriously will they take accusations of YouTuber abuse?

***

In the past, YouTubers have often been good at self-policing. Hank and John Green are American brothers who run the YouTube channel Vlogbrothers, which has over three million subscribers. They own a record label, DFTBA, and run the annual YouTube convention VidCon. Lombardo and Day were DFTBA artists, and were dropped from the label after the accusations emerged. The Green brothers also banned Pepper from VidCon.

After the storm of accusations in 2014, an enormous number of popular YouTubers made videos in response. Hank Green explained consent to his audience, while the comedy YouTuber TomSka created a guide to YouTube gatherings. The popular YouTube duo Jack and Dean even made a music video about consent. The community came together to exile those who weren’t being punished in other ways. The subscriber numbers on the accused’s channels dropped dramatically.

Yet within a few months, many disgraced YouTubers can return to the platform to harness a new generation of fans, many of whom might not be aware of the accusations.

“YouTube still allows them to create content and make money off it, and that to me is just communicating that the behaviour is just not that bad. It’s sort of equivalent to a slap on the wrist and it doesn't convey the extremity of the situation of what they’ve done,” says Neesey. “I think they should be completely ostracised from the community, and have their status stripped from them, and I think YouTube should support that. Because they’re criminals.”

On Twitter, YouTuber Damon Fizzy claims he received backlash from Jones’s fans when trying to speak out years ago. “It’s crazy the backlash I received versus now. I was literally treated worse than the person who uses his underage fans for sexual gain,” he wrote.

And it’s true that YouTubers’ leagues of adoring fans can make it difficult to speak out about abuse. It is hard for many adults to understand how consuming being a young fan can be, particularly when manipulation is involved. When I ask both Ashley and Neesey what they would say to young female fans who start talking to YouTubers, they both say this is fine. Neesey warns that when a youngster becomes uncomfortable, they should end communication, but both she and Ashley feel that safe, normal fan-creator interaction is fine, indeed desirable.  

Sapphire Putt is a 20-year-old who claims a YouTuber coerced her into filming videos of herself dancing when she was 16. When I ask if she thinks it would be OK for the YouTuber to return to YouTube, she says she would be “cautious” but “wouldn’t throw the possibility of maybe giving him a chance again”.

“If he actually shows that he’s learned, you know, I would give it a chance and if he would mess it up again then that’s it, you know.”

When I ask Ashley what she would say to people who remain fans of Austin Jones she says: “I’d say that I probably understand... but they also need to understand that what he’s doing isn’t right and no one should be treated the way he is treating people.”

***

The NSPCC is currently calling for an independent regulator to scrutinise internet companies and fine them if they fail to keep children safe.

“We want the government to draw up a list of minimum standards that internet companies must observe to protect children, and children should be automatically offered safer accounts that protect them from grooming and harmful content,” an NSPCC spokesperson says.

“We know from our Childline service that online sexual exploitation is increasing so it’s vital that more is done to protect young people from abusers who use social media to target and manipulate them.”

For now, Ashley is simply glad things didn’t go further. “It's scary not knowing what could've happened, knowing that I was brainwashed like to believe it was OK, and I'm just happy he's not able to message other girls at this point,” she says.

Neesey hopes that schools will get better at teaching consent. “As a young person, I knew I felt a bit uncomfortable but I just thought that I was being dramatic... so I think people need to be educated, for sure.”  She says education needs to be improved not just in schools, but in the media.

“Unfortunately, people are sort of used to it now, after quite a few YouTubers, so it’s sort of like, ‘Oh another one.' People aren’t talking about it as much – not that it’s old news, but it’s not as shocking. People aren’t giving it as much attention as it needs.”

The NSPCC advises that if a child is worried about an online situation they should talk to a trusted adult or contact Childline on 0800 1111. Parents can find out more about talking to their child about staying safe online by searching Share Aware or visiting www.nspcc.org.uk

Amelia Tait is a technology and digital culture writer at the New Statesman.

This article first appeared in the 27 April 2009 issue of the New Statesman, Rise of the Geek