Financial News
- 2 July 2012, 15:53
Exclusive: Grandees To Head Barclays Probe
The City grandee who led a review of corporate governance at Britain's banks in the aftermath of the financial crisis is being touted to oversee a probe of the 'wild west' culture at Barclays' investment bank, I have learnt.
People close to Sir David Walker, one of the financial sector's most respected figures, have signalled that he would be interested in chairing an independent review at Barclays following the scandals which have plunged the bank's boardroom into crisis.
Leading shareholders have in the last 24 hours demanded that the board of Barclays, led by Marcus Agius, the chairman, and Sir Mike Rake, the senior independent director, commit to an independent review of events at the bank.
Another candidate for the supervisory role would be Lord Davies, the former trade minister and ex-chairman and chief executive of Standard Chartered, the emerging markets-focused bank. He, too, is understood to be open to an approach from Barclays investors.
Barclays was fined £290m this week by regulators in the UK and US for rigging the key benchmark interest rate LIBOR and along with other banks was named by the Financial Services Authority (FSA) this morning as being culpable in the mis-selling of interest rate swaps to small businesses.
One shareholder in Barclays told me this morning that Davies and Walker were both "credible" names to oversee such a review, although it remains unclear whether the bank would agree to such an unprecedented probe.
The two men are likely to be sounded out by investors in the coming days. Walker has more time to oversee a review following the failure of a new bank acquisition vehicle to secure a deal to buy 632 Lloyds Banking Group branches. His credentials include acting as the independent reviewer of the FSA's inquiry into the collapse of Royal Bank of Scotland, published last December.
Bob Diamond, Barclays' chief executive, faces a battle to hang onto his job following the emergence of the LIBOR scandal although some investors believe that removing him at a time when the bank's balance sheet is so heavily-exposed to the Eurozone would be a disastrous move.
what do you think?
John Poole
Corruption, fraud and deceit at the highest level - time to end this rotton capitalist system. But it will not happen because the rich will simply investigate the rich and decide that....well it is alright to be rich.
Mikel roi
Are these "Grandees" really suitable? Or are they being touted to allay public disgust and anger - rather than doing the right thing and holding an independent enquiry with a couple of tough, wage earning, paying customers on it to ask some previously never mentioned questions?
Mike Drouin
all these people disgust me they are quite simply thieves , they have been caught with thier hands in the till ,should be sent to a harsh prison , no time for them at all and t guess all the banks are the same .
Stuart Harley
WHAT IS A GRANDEE.????............PROBABLY A TOOTHLESS PERSON WHO GOES TO THE FSA OFFICES AND DRINKS BEVERAGES ALL DAY !!
Adrian Wagstaff
I think, this: so far as I understand it, or don't, the Barclay's peopler were trying to manipulate the stock markets, somehow, in order to mainly effect a higher rate of interest returned to the investors? Criminally wrong, as that might well be, I would imagine, the stock markets are permanently, deliberately affected by rich companies and private individuals every minute of every day. I just wondered, you might imagine, every country on Earth must be practically at war with every other country all the time, anyway, using stock market manipulative practises? Everyone knows, governments and security services try to adjust information on the internet for political purposes. How likely is it, they're not all into altering stock markets for governments? What is happening in the rest of the global stock markets and investings, anyway? What lurks out there? ... You are insisting that they are some of the most evil people on Earth? Compared to what stock market manipulators? Perhaps, I misunderstood the details? ...
stevegs850
how come the reasonably well informed man on the street could have seen these events happening without the intervention of overpaid jobsworths years ago.its simple, you lend within the individuals means with a guaranteed regular return at an honest rate and the whole system sorts it self out, no they have to be greedy and prey on peoples fears to make a profit and offer insurance for the people in little league who have lost the confidence to borrow, who destroyed that confidence? the banks.
Bernard Petrie
Governments that have little manufacturing industry are scared of banks, they have no other form of income that compares with the banking section. People should be prepared for what may happen if the banks do get strictly regulated. Are we prepared face up to what may be drastic cut backs to balance our lose of state income? We should be our morals and values depend on it.
Peter Coates
4:08pm on 29/6/2012
Everyone already knew the banks are not what we think they are. This is not really news. When is somebody going to get a grip on it. This government seem useless. They don't frighten anybody leave alone the bankers.