Cidersomerset
20th January 2013, 14:27
Exposed: The regime of fear inside Barclays - and how the boss lied and shredded
the evidence
British executive at £184bn broking arm hid damning report on bullying
Intimidated staff forced to flout rules in pursuit of 'revenue at all costs'
Huge blow to Barclays reputation as new CEO struggles to relaunch bank
By Simon Watkins
PUBLISHED:01:20, 20 January 2013| UPDATED:01:21, 20 January 2013
http://i.dailymail.co.uk/i/pix/2013/01/20/article-0-170B4B49000005DC-7_306x423.jpg
Andrew Tinney resigned after it was revealed that he covered up a report into
Barclays Wealth's failings
A senior Barclays executive has quit after it was revealed that he secretly shredded
a bombshell report that described a key part of the bank as ‘out of control’.
Andrew Tinney, who was chief operating officer of the bank’s high-end private
investment division, Barclays Wealth, destroyed the explosive dossier at his £5
million Surrey mansion after reading its shocking contents.
He then misled banking regulators and Barclays chief executive Antony Jenkins –
the man brought in to clean up the bank after the Libor rate-fixing scandal and the
resignation of Bob Diamond – by pretending that the report had never existed.
But he finally owned up to suppressing it, and last week Barclays made an internal
announcement that he had resigned from his job.
The dossier, seen by The Mail on Sunday, exposes a culture of fear, intimidation,
bullying and mismanagement at the bank’s stockbroking and investment arm,
which handles client assets worth £184 billion.
The Mail on Sunday’s revelations come at an acutely embarrassing time for
Barclays, as bosses try to regain public trust after a series of deeply damaging
scandals.
The report which Mr Tinney suppressed paints a devastating picture of
incompetence and arrogance at the bank, showing that executives:
Pursued a ‘revenue at all costs’ strategy.
Fostered a culture of fear and intimidation.
Were ‘actively hostile’ to the idea of compliance with banking rules.
Presided over a ‘broken culture’ where problems were ignored or buried.
Allowed the business to spin ‘out of control’.
But Mr Tinney, 46, shredded the only hard copy and ensured that its contents were
not entered into the Barclays computer system.
Last Monday, his colleagues learned that he had quit as chief operating officer of
Barclays Wealth, where he received a package worth around £5 million a year in
salary, bonus, share options and
http://i.dailymail.co.uk/i/pix/2013/01/20/article-2265253-170B4C82000005DC-271_634x430.jpg
The bank said last night that Barclays Wealth customers had not suffered because of the cultural problems
( INTERPRETATION ..THE BANK SAID LAST NIGHT BARCLAYS WEALTHY CUSTOMERS HAD NOT SUFFERRED BECAUSE OF THE CULTURAL PROBLEMS. THE MUGS WILL PAY FOR THAT !! )
Mr Tinney received no payoff from the bank, so avoiding embarrassing questions
that would have inflicted further damage on Barclays’ already sullied reputation.
However, Barclays could face fines running into millions if it is shown to have
ignored banking rules.
Speaking at his six-bedroom home in Weybridge last night, Mr Tinney said: ‘I’m
sorry but I shouldn’t be having this conversation with you. Can you speak to the
company?’
The investigation which he tried to cover up in March last year was triggered after
regulators found ‘deficiencies’ in the New York division, Barclays Wealth America
(BWA).
However the problems pervaded the entire Wealth division, which is based at
Canary Wharf in London, according to one member of the inquiry team.
Compiled by consultancy firm Genesis Ventures, the report said: ‘The current
leadership team have pursued a course of “revenue at all costs”, taken a conscious
decision to ignore support functions, reinforced a culture that is high risk and
actively hostile to compliance, and ruled with an iron fist to remove any
intervention from those who speak up in opposition.
‘Management consciously failed to invest in necessary technology, people and
safeguards that it knew it needed, leaving these areas understaffed, under-skilled,
under-supported and in disarray.
http://i.dailymail.co.uk/i/pix/2013/01/20/article-2265253-170B6CBB000005DC-206_634x586.jpg
‘A conscious choice was made to ignore compliance until an issue was raised by the
regulators – actively inviting intervention. There has been a total lack of
accountability by the senior team.
‘Management have created a culture of dominance and fear that has removed
escalation of issues [the reporting of concerns up the management chain] and
created a siloed organisation with serious flaws. Issues do not flow up but are
buried, stopping any solution ever coming to light.‘This culture immediately
removes anyone who opposes Mitch [BWA managing director Mitch Cox] and his
team or who expresses dissent in any way… and prevents any counterbalance to
the “revenue at all costs” strategy.’
One banker questioned by the investigators said: ‘When I reported a compliance
issue to a member of ManCo [management committee], I was told, “I don’t have
time for this bull****.’ Another said: ‘When we presented the risk report, [an
executive] said “This is a piece of s***” – and threw it across the room.”’
One senior manager is accused in the report of being ‘incredibly defensive’ and of
failing to take regulatory issues seriously. Another executive is said to have been
determined to stop the inquiry team from gathering information. This individual,
the report says, was regarded by colleagues as a ‘key contributor to the current
culture of fear’.
In one of the most devastating sections of the dossier, the consultants say: ‘The
senior team portray themselves as all-powerful and all-knowing… and people chose
to disagree with them at their own peril. It is a mentality of superiority which, when
combined with other deficiencies, stops the team from tackling their blind spots.
When those deficiencies are in compliance, this results in serious issues that no one
else has the power to address.’
The report adds: ‘Stories circulate of individuals who have been fired because they
brought issues to the management’s attention. It is culturally acceptable at BWA,
from the top of the organisation down, to ignore, put off, and even deride risk and
compliance issues.’Mr Tinney had commissioned the report after regulators at the
US Securities and Exchange Commission found ‘deficiencies and weaknesses’ in
BWA’s compliance with federal banking laws in 2011. Two investigators from
Genesis Ventures interviewed more than 50 BWA employees as part of the inquiry.
When the process was complete, Mr Tinney arranged to have the report biked to
the exclusive Surrey estate where he lives.Apparently horrified by its contents, Mr
Tinney fed the document into a shredder, then denied all knowledge of it ever
having existed. However, the astonishing saga did not end there. In September, an
anonymous whistleblower, thought to be a Barclays insider, contacted chief
executive Antony Jenkins and then chairman Marcus Agius, describing the culture
within the Wealth division as ‘deeply flawed’ and asking them to look into the
mystery of the disappearing report.
http://i.dailymail.co.uk/i/pix/2013/01/20/article-2265253-170B4D9F000005DC-144_634x246.jpg
Read More...
http://www.dailymail.co.uk/news/article-2265253/Exposed-The-regime-fear-inside-Barclays--boss-lied-shredded-evidence.html
http://www.davidicke.com/headlines/78559-exposed-the-regime-of-fear-inside-barclays-and-how-the-boss-lied-and-shredded-the-evidence
the evidence
British executive at £184bn broking arm hid damning report on bullying
Intimidated staff forced to flout rules in pursuit of 'revenue at all costs'
Huge blow to Barclays reputation as new CEO struggles to relaunch bank
By Simon Watkins
PUBLISHED:01:20, 20 January 2013| UPDATED:01:21, 20 January 2013
http://i.dailymail.co.uk/i/pix/2013/01/20/article-0-170B4B49000005DC-7_306x423.jpg
Andrew Tinney resigned after it was revealed that he covered up a report into
Barclays Wealth's failings
A senior Barclays executive has quit after it was revealed that he secretly shredded
a bombshell report that described a key part of the bank as ‘out of control’.
Andrew Tinney, who was chief operating officer of the bank’s high-end private
investment division, Barclays Wealth, destroyed the explosive dossier at his £5
million Surrey mansion after reading its shocking contents.
He then misled banking regulators and Barclays chief executive Antony Jenkins –
the man brought in to clean up the bank after the Libor rate-fixing scandal and the
resignation of Bob Diamond – by pretending that the report had never existed.
But he finally owned up to suppressing it, and last week Barclays made an internal
announcement that he had resigned from his job.
The dossier, seen by The Mail on Sunday, exposes a culture of fear, intimidation,
bullying and mismanagement at the bank’s stockbroking and investment arm,
which handles client assets worth £184 billion.
The Mail on Sunday’s revelations come at an acutely embarrassing time for
Barclays, as bosses try to regain public trust after a series of deeply damaging
scandals.
The report which Mr Tinney suppressed paints a devastating picture of
incompetence and arrogance at the bank, showing that executives:
Pursued a ‘revenue at all costs’ strategy.
Fostered a culture of fear and intimidation.
Were ‘actively hostile’ to the idea of compliance with banking rules.
Presided over a ‘broken culture’ where problems were ignored or buried.
Allowed the business to spin ‘out of control’.
But Mr Tinney, 46, shredded the only hard copy and ensured that its contents were
not entered into the Barclays computer system.
Last Monday, his colleagues learned that he had quit as chief operating officer of
Barclays Wealth, where he received a package worth around £5 million a year in
salary, bonus, share options and
http://i.dailymail.co.uk/i/pix/2013/01/20/article-2265253-170B4C82000005DC-271_634x430.jpg
The bank said last night that Barclays Wealth customers had not suffered because of the cultural problems
( INTERPRETATION ..THE BANK SAID LAST NIGHT BARCLAYS WEALTHY CUSTOMERS HAD NOT SUFFERRED BECAUSE OF THE CULTURAL PROBLEMS. THE MUGS WILL PAY FOR THAT !! )
Mr Tinney received no payoff from the bank, so avoiding embarrassing questions
that would have inflicted further damage on Barclays’ already sullied reputation.
However, Barclays could face fines running into millions if it is shown to have
ignored banking rules.
Speaking at his six-bedroom home in Weybridge last night, Mr Tinney said: ‘I’m
sorry but I shouldn’t be having this conversation with you. Can you speak to the
company?’
The investigation which he tried to cover up in March last year was triggered after
regulators found ‘deficiencies’ in the New York division, Barclays Wealth America
(BWA).
However the problems pervaded the entire Wealth division, which is based at
Canary Wharf in London, according to one member of the inquiry team.
Compiled by consultancy firm Genesis Ventures, the report said: ‘The current
leadership team have pursued a course of “revenue at all costs”, taken a conscious
decision to ignore support functions, reinforced a culture that is high risk and
actively hostile to compliance, and ruled with an iron fist to remove any
intervention from those who speak up in opposition.
‘Management consciously failed to invest in necessary technology, people and
safeguards that it knew it needed, leaving these areas understaffed, under-skilled,
under-supported and in disarray.
http://i.dailymail.co.uk/i/pix/2013/01/20/article-2265253-170B6CBB000005DC-206_634x586.jpg
‘A conscious choice was made to ignore compliance until an issue was raised by the
regulators – actively inviting intervention. There has been a total lack of
accountability by the senior team.
‘Management have created a culture of dominance and fear that has removed
escalation of issues [the reporting of concerns up the management chain] and
created a siloed organisation with serious flaws. Issues do not flow up but are
buried, stopping any solution ever coming to light.‘This culture immediately
removes anyone who opposes Mitch [BWA managing director Mitch Cox] and his
team or who expresses dissent in any way… and prevents any counterbalance to
the “revenue at all costs” strategy.’
One banker questioned by the investigators said: ‘When I reported a compliance
issue to a member of ManCo [management committee], I was told, “I don’t have
time for this bull****.’ Another said: ‘When we presented the risk report, [an
executive] said “This is a piece of s***” – and threw it across the room.”’
One senior manager is accused in the report of being ‘incredibly defensive’ and of
failing to take regulatory issues seriously. Another executive is said to have been
determined to stop the inquiry team from gathering information. This individual,
the report says, was regarded by colleagues as a ‘key contributor to the current
culture of fear’.
In one of the most devastating sections of the dossier, the consultants say: ‘The
senior team portray themselves as all-powerful and all-knowing… and people chose
to disagree with them at their own peril. It is a mentality of superiority which, when
combined with other deficiencies, stops the team from tackling their blind spots.
When those deficiencies are in compliance, this results in serious issues that no one
else has the power to address.’
The report adds: ‘Stories circulate of individuals who have been fired because they
brought issues to the management’s attention. It is culturally acceptable at BWA,
from the top of the organisation down, to ignore, put off, and even deride risk and
compliance issues.’Mr Tinney had commissioned the report after regulators at the
US Securities and Exchange Commission found ‘deficiencies and weaknesses’ in
BWA’s compliance with federal banking laws in 2011. Two investigators from
Genesis Ventures interviewed more than 50 BWA employees as part of the inquiry.
When the process was complete, Mr Tinney arranged to have the report biked to
the exclusive Surrey estate where he lives.Apparently horrified by its contents, Mr
Tinney fed the document into a shredder, then denied all knowledge of it ever
having existed. However, the astonishing saga did not end there. In September, an
anonymous whistleblower, thought to be a Barclays insider, contacted chief
executive Antony Jenkins and then chairman Marcus Agius, describing the culture
within the Wealth division as ‘deeply flawed’ and asking them to look into the
mystery of the disappearing report.
http://i.dailymail.co.uk/i/pix/2013/01/20/article-2265253-170B4D9F000005DC-144_634x246.jpg
Read More...
http://www.dailymail.co.uk/news/article-2265253/Exposed-The-regime-fear-inside-Barclays--boss-lied-shredded-evidence.html
http://www.davidicke.com/headlines/78559-exposed-the-regime-of-fear-inside-barclays-and-how-the-boss-lied-and-shredded-the-evidence