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Barclays Wealth chief quits amid allegations division is ‘out of control’

by Daniel Grote on Jan 21, 2013 at 07:59

Barclays Wealth chief quits amid allegations division is ‘out of control’

Barclays Wealth chief operating officer Andrew Tinney has quit the business amid allegations he destroyed a secret report into the business that labeled it ‘out of control’, according to the Mail on Sunday.

The report, compiled by consultancy firm Genesis Ventures, was commissioned after US regulators found deficiencies in its New York division, Barclays Wealth America, according to the paper.

It identified a series of damning failings at the business, which according to one member of the inquiry team pervaded the whole division, based in Canary Wharf.

It alleged executives pursued a ‘revenue at all costs’ strategy, fostered a culture of fear and intimidation, were ‘actively hostile’ to the idea of compliance with banking rules and allowed the business to spin ‘out of control’, according to the Mail.

Tinney is alleged to have destroyed the only copy of the report after receiving it in March, and it is claimed he then denied its existence. According to the Mail, an anonymous whistleblower alerted Barclays chief executive Marcus Agius to the report in September.

Barclays then commissioned law firm Simmons & Simmons to launch a further investigation, which concluded Tinney had failed to tell his own bosses and US regulators about the report. The Mail said that report was now in the hands of the Financial Services Authority.

6 comments so far. Why not have your say?

Hickky

Jan 21, 2013 at 09:23

Surprise Surprise, Barclays fostered a culture of fear and intimidation, were ‘actively hostile’ to the idea of compliance with banking rules and allowed the business to spin ‘out of control’, What's new?

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Julian Stevens

Jan 21, 2013 at 10:12

Another unsavoury mess for Hector Sants to get his teeth into, alongside ensuring that investors in those two Aviva funds are properly compensated. He has a busy time ahead.

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Anitaki

Jan 21, 2013 at 10:55

I once heard that the culture there was "feral". Seems to have been apt.

I do wish this sort of stuff was headlined more in the 'Mail' rather than concentrate on one "poor widow" (next to photo of 70 year old pulling a long face, sitting comfortably in her £800k house in Esher), whose £100,000 investment is now only worth £75k because the IFA did the right thing at the wrong time.

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Polfers

Jan 21, 2013 at 11:15

With reference to Hector Sants: whilst there are things to which we are not privy within the unchallengeable and mysterious inner sanctum of Canary Warf and which may in part lead us to conclusions based on necessarily limited information, it still begs the unquestionable

question as to whether:

(a)Sants was so implausibly inept at his role that he failed entirely to see what Barclays [and other Banks], were up to, what their internal ‘cultures’ were, and how hostile they were towards rules and regulations, or

(b) He knew full well what their internal cultures were like and also what their attitude to the regulators were, and did [effectively] precisely nothing about it.

Either way, how, with any moral compass what-so-ever, can he have taken a role such as he has at Barclays? He hides behind the convenient shield of bringing a new compliance culture to Barclays, but if, as a powerful regulator he couldn’t get even close to that,, then what chance is there of him doing so if the beast to be tamed is also his paymaster – and a dammed handsome paymaster at that. Nauseating.

Still, the FCA can pick up the baton, and no doubt will continue to bring the magnifying glass of scrutiny to bear the real problem - the small IFA - and ensure he is duly shrivelled to death by its closely focussed rays. Whilst Jo public is suitably distracted by this spectacle staged on their behalf, the banks and large insurance companies under a new lease of life will continue to manipulate matters almost at will to their own benefit, and consumers will be lead to believe it's all in their best interests.

Utterly shameful.

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Lyndon Edwards

Jan 21, 2013 at 12:08

How much was being paid out in bonuses to Barclays chiefs while this was going on? Why aren't they all being pursued to repay them?

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Hickky

Jan 21, 2013 at 12:22

@ Lyndon

Do you think this attitude is confined to Barclays? If shareholders seek redress of bonus paid to chiefs when later found to be playing fast and lose with rules, no PLC would be unaffected. As the share price was effected by the profits declared, would you then demand someone who sold Barclays shares in 2006 pay some of his inflated price to those who bought them?

Be sensible, anyway, most of them have relocated back to the USA now and we know the extradition rules only work one way!

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