Barclays executive quits amid claims division is 'out of control'

A Barclays executive has quit amid claims he destroyed an explosive report which labelled the bank 'out of control'.

A Barclays executive has quit amid claims he destroyed an explosive report which labelled the bank 'out of control'.

Andrew Tinney, Chief Operating Officer of the bank's private investment division, Barclays Wealth, is accused of shredding the document at his home in Surrey, the Mail on Sunday reported.

The document was said to expose a culture of fear, intimidation, bullying and mismanagement at the bank's stockbroking and investment arm, which handles client assets worth £184bn.

Tinney initially denied the report ever existed, misleading banking regulators and Barclays Chief Executive Antony Jenkins, who recently took over the reins from disgraced Bob Diamond.

He eventually confessed to suppressing the document which led to last week's announcement he had stepped down from his role.

Tinney received no pay-off from the bank in order to avoid further damage to the image of Barclays following a number of dramas including the LIBOR rate-fixing scandal under former boss Diamond.

However, the bank could be hit by fines of up to millions if it is shown to have ignored banking rules.

Tinney told the Mail: "I'm sorry, but I shouldn't be having this conversation with you. Can you speak to the company?"

The report, which he tried to cover up in March last year, was written after regulators found 'deficiencies' in the New York division, Barclays Wealth America (BWA).

The investigation also illustrated problems at the entire Wealth division, based in London, according to a member of the inquiry team.

The document, compiled by consultancy firm Genesis Ventures, read: "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.

"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'."

The report is now in the hands of the Financial Services Authority.

RD

Recommended

Share tips of the week – 22 October
Share tips

Share tips of the week – 22 October

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
22 Oct 2021
Three dividend stocks from the dynamic Asia/Pacific region
Share tips

Three dividend stocks from the dynamic Asia/Pacific region

Professional investor Sat Duhra of the Henderson Far East Income investment trust highlights three of his favourite stocks.
18 Oct 2021
Share tips of the week – 15 October
Share tips

Share tips of the week – 15 October

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
15 Oct 2021
Trading: stash the family cash in this cheap wealth management firm
Trading

Trading: stash the family cash in this cheap wealth management firm

Wealth management is a growth market. Rathbone Brothers should be a prime beneficiary – and looks cheap. Matthew Partridge explains the best way to pl…
12 Oct 2021

Most Popular

How to invest as we move to a hydrogen economy
Energy

How to invest as we move to a hydrogen economy

The government has started to roll out its plans for switching us over from fossil fuels to hydrogen and renewable energy. Should investors buy in? St…
8 Oct 2021
How to invest in SMRs – the future of green energy
Energy

How to invest in SMRs – the future of green energy

The UK’s electricity supply needs to be more robust for days when the wind doesn’t blow. We need nuclear power, says Dominic Frisby. And the future of…
6 Oct 2021
Why the world’s most important economic data release has unnerved markets
US Economy

Why the world’s most important economic data release has unnerved markets

The US added only 194,000 jobs in September, far shorter than the 500,000 that were expected. John Stepek explains why markets didn't react as they no…
11 Oct 2021