Barclays CEO fined $1.5 million for trying to unmask
whistleblower
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 [May 11, 2018]
By Lawrence White and Huw Jones
LONDON (Reuters) - British regulators and
Barclays <BARC.L> have fined the bank's Chief Executive Jes Staley a
combined 1.1 million pounds ($1.5 million) after he tried to identify a
whistleblower who sent letters criticizing an employee of the bank.
The Financial Conduct Authority (FCA) and the Bank of England's
Prudential Regulation Authority said on Friday they had together fined
Staley 642,000 pounds. That included a 30 percent discount for him
agreeing at an early stage to settle.
Barclays imposed a 500,000 pound cut to his 2016 pay.
The regulatory fine is the first ever such penalty for the sitting CEO
of a major bank in Britain, and cast a pall over Staley's efforts to
show the bank has improved its culture since the freewheeling days of
before the 2007-8 financial crisis.
"Mr Staley’s actions fell short of the standard of due skill, care and
diligence expected of a CEO in a regulated firm," the FCA said.
Regulators said the fine was only 10 percent of his overall pay package.
Staley, a 61-year old American and former JPMorgan banker who took the
helm at Barclays in December 2015, at one stage appeared at risk of
losing his job over the probe.
"I have consistently acknowledged that my personal involvement in this
matter was inappropriate, and I have apologized for mistakes which I
made," Staley said in the bank's statement on Friday.
The regulatory findings will also be closely read by lawmakers keen to
ensure top banking officials are held accountable for their actions at a
time when there are growing calls to better protect whistleblowers.
The regulators stopped short of saying Staley was unfit to continue in
his role, after he twice attempted to find out who wrote letters raising
"concerns of a personal nature" about an unidentified senior employee.
"Mr Staley acted unreasonably in proceeding in this way and, in doing
so, risked undermining confidence in Barclays’ whistleblowing policy and
the protections it afforded to whistleblowers," the FCA said.
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Barclays' CEO Jes Staley
arrives at 10 Downing Street in London, Britain january 11, 2018.
REUTERS/Peter Nicholls/File Photo
VIDEO FOOTAGE
Tracking down the whistleblower became a transatlantic effort, the regulators'
report showed.
A copy of the envelope of the first letter was sent by Staley's office via group
security to a Barclays employee in the United States "who engaged with their
contacts in the U.S. to try and identify the author".
These "contacts" provided the date, time, location and cost of buying postage
for the first letter.
Group security then made a fruitless attempt to obtain "video footage" of the
person who bought postage for the first letter, the report said.
It was the regulators' first case brought under Britain's new senior managers
regime (SMR), a post financial crisis reform aimed at making top staff directly
accountable for their actions.
Barclays is subject to the first ever requirements to tell regulators annually
about any whistleblowing cases made against senior managers, and any cases where
Barclays has sought to identify anonymous whistleblowers.
The bank's "whistleblowers' champions", who come under the SMR, will also have
to attest personally each year on the soundness of Barclays' whistleblowing
systems.
Barclays said in April last year it had reprimanded Staley and would cut his
bonus as the two financial watchdogs launched a year-long investigation into his
actions.
Authorities in the United States are still investigating the case.
($1 = 0.7381 pounds)
(Reporting by Lawrence White and Huw Jones; additional reporting by Emma Rumney
and Kirstin Ridley, Editing by Mark Potter)
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