Barclays boss shamed
After launching a transatlantic hunt for a whistleblower, chief executive is hit with £1million penalty – but still keeps his job
THE boss of Barclays has been hit with a penalty of £1.1million – but was allowed to keep his job after abusing his position by trying to unmask a whistleblower.
Jes Staley, 61, was warned against attempting to identify the author of two notes attacking a colleague, but ignored the advice and told the bank’s security team to investigate.
His order led to a witch-hunt in which US government officials were enlisted to track down post office CCTV of a culprit – a flagrant violation of whistleblowing rules.
City watchdogs fined him £ 642,430 yesterday, while the bank stripped him of £500,000 in bonus payments.
However, the Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA) ruled that his actions were not serious enough for dismissal. This makes him the first boss of a major City institution to keep his job after being fined.
Campaigners said the penalty was peanuts for the millionaire, who has homes in London and New York and a 90ft sailing yacht, Bequia, named after the Caribbean island where he and his wife, Debora, honeymooned. Mary Inman, a lawyer who represents whistleblowers at the legal firm Constantine Cannon, said: ‘I’m sorely disappointed yet again by the FCA. This is simply bus money for Jes Staley and sends entirely the wrong message.
‘The takeaway for other bankers is that you can try to unmask a whistleblower and just get a slap on the wrist and keep your job.’
The scandal started two years ago when Barclays was sent a letter posted in the US signed by ‘John Q Public’. It attacked employee Tim Main, who had worked with Mr Staley at the US bank JP Morgan and was later hired by Barclays.
The note is thought to have raised concerns about personal problems experienced by Mr Main more than five years ago, how Mr Staley dealt with them and the circumstances in which Mr Main joined Barclays.
A second letter made similar claims days later. Mr Staley – an American who earned £3.9million last year – was incensed and suspected they were sent by a former
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what When Mr the Staley Barclays had board done heard they reported him to British authorities, triggering an investigation that has lasted more than a year.
It was a crucial test for new rules meant to hold financial executives to account for their actions.
Mark Steward, of the FCA, said: ‘Mr Staley breached the standard of care required in a way that risked undermining confidence in Barclays’ whistleblowing procedures. It is critical that individuals are able to speak up anonymously and without fear of retaliation.’
Mr Staley said: ‘I have consistently acknowledged that my personal involvement in this matter was inappropriate, and I have apologised for mistakes I made.’