BARCLAYS RAID TRIGGERS CARNEY WARNING

THE Bank of England is prepared to intervene if corporate raider Ed Bramson destabilises Barclays, governor Mark Carney has warned.

Bramson is trying to force his way onto the Barclays board through a shareholder vote, and has hinted he will seek a radical change of direction if he succeeds, including major cutbacks.

But to sit on the board the 68-year- old will need approval from the Prudential Regulation Authority, part of the Bank of England responsible for the stability of major lenders. And while he did not mention London-born Bramson by name, Carney, 53, indicated that the Bank of England was watching developments at Barclays closely.

Asked if he was concerned that Bramson’s bid to join the board could cause turbulence in the financial system, Carney said: ‘I try and avoid talking about a specific institution.

‘But it’s absolutely paramount that the core of the banking system is adequately capitalised, manages their risk well and is focused on delivering sustainable returns to their shareholders over the medium term,’ he stressed.

‘The first thing you have to do as a regulated financial entity is meet the expectations of the PRA, the supervisors, and the Financial Conduct Authority.

‘We’re working for all UK citizens, and all stakeholders in those institutions should be aware of that. Those standards aren’t compromised for anyone.’

If more than 50pc of voting investors back Bramson’s bid for a board seat at Barclays’ annual meeting in May, he will get a job pending PRA approval – regardless of what the bank’s bosses think. Bramson controls a 5.51pc stake in the lender through his firm Sherborne Investors.

The Connecticut-based investor could earn as much as £40m in extra fees from the fund he oversees if he manages to become chief executive or chairman of the bank, according to analysis seen by the Mail.

It means that a non-executive director job could just be the start of his campaign.

Barclays shares fell 3.2pc, or 5.16p, to 156.42p yesterday.