Barclays scandal has deepened as reports emerged that Andrew Tinney, the chief operating officer at the bank’s wealth division, had destroyed a damning report which revealed Barclays Wealth’s misdeeds in the US. The damaging revelations led CEO Antony Jenkins address the bank’s staff to observe an ethical working code or to leave. Antony Jenkins has been planning a corporate overhaul for Barclays which has been ridden in scandals since the past year.
The report, compiled by consultancy firm Genesis Ventures and seen by Mail On Sunday, sharply criticises Barclays for its ”revenue at all costs” strategy and a “culture that is high-risk and actively hostile to compliance”. The appalling report exposed a culture of fear, intimidation, bullying and mismanagement at the bank’s stockbroking and investment arm, which handles client assets worth £184 billion. The report revealed that the bank relied upon ‘broken culture’ where problems were ignored or buried, and allowed business to spin ‘out of control’.
The Genesis report on Barclays was made available only to Andrew Tinney who admitted to have destroyed the dossier at his £5 million Surrey mansion after reading its shocking contents. Andrew Tinney then went onto feign the existence of the report and misled banking regulators and Barclays chief executive Antony Jenkins, along with Tom Kalaris, the head of Barclays Wealth.
Tom Kalaris and the Wealth board, including Andrew Tinney, had called upon consultants Genesis Ventures to review the London and New York-based operation after regulators questioned irregularities. Barclays asked for a follow up cultural audit after an initial report from Genesis identified weaknesses and recommended a course of action. Tom Kalaris was unaware of the the existence of the report until December, when Andrew Tinney admitted to its existence.
The latest Barclays scandal has infuriated top management which ousted Andrew Tinney last week with no pay-off. Andrew Tinney as the COO of Barclays Wealth had been receiving a package worth around £5 million a year in salary, bonus, share options and incentive payments. Currently, Tom Kalaris and the Wealth management team are pushing ahead with the reforms suggested by Genesis.