If Barclays was a celebrity, it’d be Lindsay Lohan. The firm generates revenue, sure, but it makes headlines for all the wrong reasons. Scandalous news seems to pop up nearly every day. Now we have a better idea why.
In a 244-page independent report commissioned by Barclays issued on Wednesday, investigators confirmed what many had thought all along: The British bank grew too fast, it failed to promote proper values and, most importantly, Barclays – and its bankers – always favored short-term success over sustainability. Barclays also pushed regulations to their limits and fostered a culture where upper management wasn’t bothered with serious concerns, investigators said.
While the report focuses mainly on the past, when the bank was under different leadership, it will likely have ramifications on current bankers. Barclays’ investment banking arm was “overly generous” in paying its employees, said investigators, and the bank’s incentive programs "suffered a number of design issues.” Pay practices reinforced the bank’s me-first culture.
While critical, the report isn’t earthshattering – everyone knew of Barclays’ overriding cultural issues. Still, the findings give current Chief Executive Antony Jenkins increased leverage to make many of the changes that he’s suggested, including further reigning in pay. Incentivized compensation is likely to take a hit, which will only infuriate U.S. bankers at Barclays who feel their bonuses are already inequitable.
Jenkins and his team just got a lot stronger. Get ready for rehab, Barclays.
Matthew Taylor, a former Goldman Sachs trader who hid an $8.3 billion futures position from his bosses, resulting in a $118.4 million loss, pleaded guilty to wire fraud on Wednesday.
Green Investments (Bloomberg)
Environmental sustainability and banking aren’t often used in the same sentence. But if you want to work at the world’s greenest bank, knock on Citi’s door.
Lawsuit has Life (NBC)
SAC Capital founder Steven Cohen simply can’t stay out of the news. A lawsuit filed by his ex-wife, claiming fraud and seeking $100 million in damages, has been partially reinstated by an appeals court.
Report Cards (Bloomberg)
Bank of America Chief Executive Officer Brian Moynihan has repaired the firm’s balance sheet since taking over three years ago, but has watched revenue fall each year. Now he’s pushing his regional leaders to generate more revenue. Executives will be graded and ranked.
Walking Away (Financial News)
One of the more influential women in the European financial sector, Rhonda Ryan, is leaving her role at asset manager PineBridge Investments, which is restructuring its private equity operations.
Making It as a Mother (eFinancialCareers)
Louise Brett, head of FSI Analytics at Deloitte in London, reached partner despite being on maternity leave at the time, and believes it is possible to juggle a career in finance with raising a family.
Changing of the Guard (Financial Times)
TD Bank Chief Executive Ed Clark will step down next year. Clark will be succeeded by Bharat Masrani, who was instrumental in helping the Canadian bank expand into the U.S.
Diversity Scoreboard (BBW)
U.S. regulators are working to put together a set of uniform standards to evaluate workplace diversity at banks and other financial firms.
Buzz Around the Office
Fight the Bull, You Get the Bear Hug (Daily Bulletin)
Police are searching for a 31-year-old California man who purposefully crashed into the back of another vehicle and attempted to fight the other driver in an effort to impress his date. His plan went awry when the other driver got out of his car and overpowered him with a bear hug.
List of the Day: Raise Techniques
Working hard is one proven way to get a raise. If that doesn’t work, maybe try one of these shallow, yet effective techniques.
- Make your boss’s job easier.
- Be a relentless self-promoter.
- Be beautiful.
(Source: AOL Jobs)