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 – 30 September
Share tips

Share tips of the week – 30 September

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
30 Sep 2022
The best British tech stocks from a thriving sector
Share tips

The best British tech stocks from a thriving sector

Move over, Silicon Valley. Over the past two decades the UK has become one of the main global hubs for tech start-ups. Matthew Partridge explains why,…
29 Sep 2022
These 3 top value stocks offer
Share tips

These 3 top value stocks offer

Professional investor Adam Rackley of Cape Wrath Capital highlights three overlooked value stocks to buy.
29 Sep 2022
Three top-notch Asian stocks to buy
Share tips

Three top-notch Asian stocks to buy

Professional investors Adrian Lim and Pruksa Iamthongthong, managers of the Asia Dragon Trust, pick three of their favourite Asian stocks to buy now.
23 Sep 2022

Most Popular

Why everyone is over-reacting to the mini-Budget
Budget

Why everyone is over-reacting to the mini-Budget

Most analyses of the chancellor’s mini-Budget speech have failed to grasp its purpose and significance, says Max King
29 Sep 2022
How the end of cheap money could spark a house price crash
House prices

How the end of cheap money could spark a house price crash

Rock bottom interest rates drove property prices to unaffordable levels. But with rates set to climb and cheap money off the table, we could see house…
28 Sep 2022
Why UK firms should start buying French companies
UK stockmarkets

Why UK firms should start buying French companies

The French are on a buying spree, snapping up British companies. We should turn the tables, says Matthew Lynn, and start buying French companies. Here…
28 Sep 2022