Scandal to cost Barclays chief as much as £1m

ThE boss of Barclays is set to hold on to his job after seeking to unmask a whistleblower.

Jes Staley has been issued with a humiliating public reprimand by watchdogs and is expected to lose at least £1m for wrongly attempting to uncover the writer of poison pen letters criticising his appointment of a friend.

he has been rapped by authorities for failing to take due care over his actions, a big blow for a top City figure.

But regulators decided that he is still a fit and proper person to run the bank – following fears he could be forced out.

it comes ahead of the lender’s annual meeting next month, when shareholders will vote on Staley’s reappointment to the board.

The decision is also likely to give Barclays a boost in its battle to see off corporate raider Edward Bramson, who has bought a 5.2pc shareholding amid speculation he wants to break up its investment bank. Staley has been sent the conclusions of a year- long investigation by the Financial Conduct Authority and prudential Regulation Authority, with the penalties they are proposing he should pay.

he has until early May to respond, after which the decisions will be made public.

how much he pays will depend on how severe his actions are judged to have been. Barclays will also take back a chunk of his £1.3m bonus from 2016. Staley was incensed when his board received two letters attacking employee Tim Main, a former colleague at Wall Street titan Jp Morgan.

The chief executive felt they were an unwarranted attack, and ordered Barclays’ security team to find the source, who was never found.

Regulators have not penalised Barclays but have ordered it to report every year on its whistleblowing processes.