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Barclays Fires CEO In Latest Rate-Rigging Euro Bank Shakeup

Tyler Durden's picture




 

It's shaping up to be a rough year for CEOs at Europe's most notorious rate rigging, scandal-laden investment banks.

Just three months after Brady Dougan left Credit Suisse and barely 30 days since Anshu Jain and Jürgen Fitschen tendered their resignations at Deutsche Bank, Barclays has shown CEO Antony Jenkins the door. 

The move comes as Chairman John McFarlane (who took over as Chairman in April) looks to restrucutre what he calls a "cumbersome bureauacracy." The bank did not mince words in its press release announcing the shakeup: 

"It became clear to all of us that a new set of skills were required for the period ahead. New leadership is required to accelerate the pace of execution going forward. Mr. McFarlane is ideally qualified in this respect.”

 


Here's WSJ with a look back at the outgoing Jenkins' stint at the helm:

  1. Despite recent calls of dissatisfaction, the decision to name Mr. Jenkins as chief executive in August 2012 was broadly supported by analysts, and was described as “sensible”, “cool-headed” and “intelligent.” However, the honeymoon period was short-lived. One month later, Barclays was downgraded by Credit Suisse and J.P. Morgan over concerns about the profitability of its investment bank.
  2. Mr. Jenkins was a Barclays man. He joined the bank as a graduate trainee in 1983. After a six-year spell at Citigroup, he returned in 2006 and by 2009 headed up its retail and business banking. This lack of investment banking acumen led some analysts to speculate that Mr. Jenkins might cut back the unit after its growth under Mr. Diamond. But this never really materialized. Despite some cut backs in fixed-income and commodities, Barclays remains one of the largest investment banks in Europe, despite underperforming its rivals in recent years. Mr. Jenkins defended the high-pay for the unit in 2014 after a poor year, stating that he had to avoid a “death spiral” of rainmakers leaving for rivals.
  3. Mr. Jenkins didn’t waste time installing a number of projects aimed at moving Barclays away from the Libor-scandal that rocked the bank in 2012. First there was program dubbed “Transform”, aiming to “turnaround, return acceptable numbers, and sustain forward momentum”. Then there was Project Mango, a review of business practices in its investment bank. And then there was Project Electra, another review of the investment bank. During this, Barclays was dubbed itself a ‘go-to’ bank, with reviews into culture, pay, and performance reviews of managers.
  4. On a long enough time frame, Mr. Jenkins seemed to be the right man for the job. Since he joined in August 2012, Barclays share price is up 52.68%, in comparison the FTSE 100 is up around 15%. On this basis – his reign has been success.  However, from August 2013 the share price has fallen 1.12%, compared with an increase of 2.5% for the FTSE 100. During this period Barclays has paid billion-dollar fines for forex rigging, Libor rigging, and failing to keep client assets segregated. It is still facing investigations from the Serious Fraud Office around its capital raising in 2008. While not related to Mr. Jenkins’ tenure, the fines have weighed down the bank’s share price.
  5. But despite his rocky road, Mr. Jenkins is in good company, joining a group of blue-chip bank chief executives looking for new employment, including Anshu Jain, the former head of Deutsche Bank, and Peter Sands the former head of Standard Chartered. During Mr. Jenkins’s time as chief executive, he was paid a total of £10,011,000. He making money from his own exit: part of his pay, which continues until July 7 2016, is share-based. Shares are up more that 3% on news of his exit.

It's too bad, really. We're sure Jenkins was looking forward to a long and fruitful relationship with Richard Fisher, the former Dallas Fed chief Barclays hired last week as a "senior advisor."

*  *  *

Full statement from Barclays:

Antony Jenkins to leave Barclays; John McFarlane to become Executive Chairman

Barclays PLC and Barclays Bank PLC (Barclays) announce the departure of Antony Jenkins as Chief Executive and the appointment of John McFarlane as Executive Chairman pending the appointment of a new Chief Executive.  Subject to regulatory approval the change will come fully into effect on 17 July 2015 when John retires from FirstGroup.  A search for Mr Jenkins' successor is underway.  The interim results will be announced as planned on 29 July 2015. 

The Non-Executive Directors led by Sir Michael Rake, Deputy Chairman and Senior Independent Director,  concluded that new leadership is required to accelerate the pace of execution going forward and that John McFarlane is ideally qualified in this respect until a permanent successor is appointed.  This development does not signal any major change in strategy.

The Board recognises the contribution made by Antony Jenkins as Chief Executive over the past three years in incredibly difficult circumstances for the Group, and is extremely grateful to him in bringing the company to a much stronger position.  The situation he inherited would have challenged anyone facing the same issues.  This continued a period of achievement as head of Barclaycard and our Retail and Business Banking businesses.

Members of the Group Executive Committee will now report to Mr McFarlane, who will work particularly closely with Tushar Morzaria, Group Finance Director. 

Sir Michael Rake commented, "I reflected long and hard on the issue of Group leadership and discussed this with each of the Non-Executive Directors.  Notwithstanding Antony's significant achievements, it became clear to all of us that a new set of skills were required for the period ahead.  This does not take away from our appreciation of Antony's contribution at a critical time for the company."

Mr McFarlane said, "Whilst it is unfortunate that I have had little time to work with Antony, I respect and endorse the position of the Board in deciding that a change in leadership is required at this time.  I would add my personal thanks for everything that Antony has done for us.  He can be proud of his heritage, especially his excellent work on culture and values that we will continue.  I wish him well."

"Arriving at Barclays with a fresh perspective, it is evident that we have a standout brand with first-class retail, commercial and investment banking businesses.  Nevertheless, we are leaving value on the table and a new approach is required.  As a Group, if we aspire to bring shareholder returns forward, we need to be much more focused on what is attractive, what we are good at, and where we are good at it."

"We therefore need to improve revenue, costs and capital performance.  We also need to become more externally focused and deal with the internal bureaucracy by becoming leaner and more agile.  I have experienced good results in dealing with these matters elsewhere," he added.

Antony Jenkins said, "In the summer of 2012, I became Group Chief Executive at a particularly difficult time for Barclays.  It is easy to forget just how bad things were three years ago both for our industry and even more so for us.  I am very proud of the significant progress we have made since then.  Our capital position is much stronger, our business model is more balanced, we are much more disciplined on cost management, we have made good progress in rebuilding our reputation and we are seen as a leader in the application of technology to our business.  While the external environment has continued to be, and will remain, challenging the Group now has the resilience to overcome these challenges. 

"Most of all, I am proud that we have defined our culture through a common set of values for the Group and that the progress we have made and the tough decisions we have needed to take have all been achieved by applying these values and by focusing on the needs of all our stakeholders. 

"I want to thank the people of Barclays for their tireless efforts and support in achieving these results and for my own part I am looking forward to the professional opportunities that lie ahead."

 

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Wed, 07/08/2015 - 06:49 | 6284087 Dubaibanker
Dubaibanker's picture

Expect several thousand to be fired shortly or a massive fine to be levied as well as closure/sale of business in several countries within weeks or latest by Dec end.

Meanwhile, China continues to execute the takeover of Europe!

Chinese FDI in Europe and Germany: Preparing for a New Era of Chinese Capital

And Chinese giant - Fosun - is spending EUR 210m TODAY to buy a German private bank whereby 500 Germans will be working for a Chinese owner henceforth!

Fosun to add German bank to growing European portfolio
Wed, 07/08/2015 - 06:55 | 6284099 VinceFostersGhost
VinceFostersGhost's picture

 

 

Oh man....I was framed!

https://www.youtube.com/watch?v=r5h6iE_HD_g

 

Everyone does it....and I get caught......sucks.

 

Oh wait....I think I'm in the wrong courtroom.....forget I said anything.

Wed, 07/08/2015 - 07:12 | 6284134 negative rates
negative rates's picture

They said he needed to be a better liar, after they bought lehman, lying was a now a talent which needs competition and devotion.

Wed, 07/08/2015 - 06:55 | 6284112 This is it
This is it's picture

Hey, why didnt he jump?

Wed, 07/08/2015 - 06:57 | 6284116 VinceFostersGhost
VinceFostersGhost's picture

 

 

He's waiting for suicide by nailgun......he's definitely not Mad Max material.

Wed, 07/08/2015 - 07:02 | 6284124 Dubaibanker
Dubaibanker's picture

Fuckin' vodka man!!!!

Wed, 07/08/2015 - 07:07 | 6284132 VinceFostersGhost
VinceFostersGhost's picture

 

 

Thanks Pedro!

Wed, 07/08/2015 - 07:13 | 6284146 Handful of Dust
Handful of Dust's picture

"rate-rigging" is illegal in the finance industry?

 

whocouldaknowed?

Wed, 07/08/2015 - 07:11 | 6284139 junction
junction's picture

Once more, rearranging the deck chairs on the Titanic.  Barclays, like the other big banks, engaged in government sanctioned criminal activities to raise ready money.  Top UK and American regulators knew all about the rate rigging and mortgage rackets (including MERS) but did nothing but decide where to go to lunch with their co-workers. "Hands off" were the regulators marching orders.  Now, the fleeced consumers a distant memory, shakedown artists in the government are threatening the big banks with criminal sanctions to get the banks to fork over billions in civil and criminal penalties.  These "fines" go straight back to governments that allowed these consumer fraud.  Whoever is running Barclays or CitiBank or Chase, they can pay the hefty fines only by laying off thousands of employees.  Many of those employees having high paying jobs, employees who used to pay high income taxes.  No matter to the crime bosses like Obama who run their countries like Mafia bust-out operations.    

Wed, 07/08/2015 - 07:19 | 6284163 StychoKiller
StychoKiller's picture

Annnnnttoooonnny Jennnnkinnnss!  Sorry, couldn't hep myself! :>D

Wed, 07/08/2015 - 06:40 | 6284088 JustObserving
JustObserving's picture

So how big is the Barclays derivative exposure?  Ten times the GDP of the UK?

Wed, 07/08/2015 - 07:49 | 6284248 rainingFrogs
rainingFrogs's picture

bingo.  likely nothing to do with criminal activity.  derivatives probably blew up in a big way. 

Wed, 07/08/2015 - 06:42 | 6284089 B2u
B2u's picture

This is all BS.  Until these crooks start spending time in prison nothing will change.

Wed, 07/08/2015 - 06:58 | 6284120 Zero Point
Zero Point's picture

Street justice is all we'll get. If any.

Wed, 07/08/2015 - 07:04 | 6284127 Fahque Imuhnutjahb
Fahque Imuhnutjahb's picture

These bastards should be made to Gnarfle the Garthok!!

Wed, 07/08/2015 - 07:21 | 6284167 Zero Point
Zero Point's picture

Haha, first time I've ever seen that. I'll have to watch the whole movie now.

Wed, 07/08/2015 - 06:43 | 6284092 cookies anyone
cookies anyone's picture

Fuck yeah, free market...

Wed, 07/08/2015 - 06:43 | 6284093 Evil Franklin
Evil Franklin's picture

So, the CEO's have pushed as many as they could out the windows in hopes of saving their jobs, but, alas, to no avail.

Wed, 07/08/2015 - 06:46 | 6284095 NoDebt
NoDebt's picture

I'm sure he'll get some very nice parting gifts.

Wed, 07/08/2015 - 06:51 | 6284106 Ghordius
Ghordius's picture

"Arriving at Barclays with a fresh perspective, it is evident that we have a standout brand with first-class retail, commercial and investment banking businesses."

excellent

then do us all a favour and break up Barclays into a retail a commercial/business and an investment bank part, and set an example to follow

as long as the "universal bank" madness of funding investment banks with retail and commercial banking continues - aka what the repeal of Glass-Steagall has brought us - most of those scandals won't stop

investment bankers in London used to be in small banks owned by the top management who was completely "in" the business, risking all their assets with the banks, and so keen in monitoring and restraining the risk appetite of the young "masters of the universe" wannabees under them. before the "Big Bang", of course

Wed, 07/08/2015 - 06:54 | 6284110 RealityCheque
RealityCheque's picture

So, no jail. OK then....

Wed, 07/08/2015 - 07:01 | 6284122 VinceFostersGhost
VinceFostersGhost's picture

 

 

No way.....his donations are up to date.

 

Both sides....he's gold.

Wed, 07/08/2015 - 06:55 | 6284113 nmewn
nmewn's picture

So basically the board said: "Sir, you have sullied the reputation of this fine financial institutions core values and its culture. Begone!"...lol...you've got to be kidding me.

The shits getting so deep I'm gonna need a full body condom before the end of the week, the institutions core values and culture is to not get caught.

The cretin, hunt him down in the streets.

Wed, 07/08/2015 - 07:14 | 6284150 Not Goldman Sachs
Not Goldman Sachs's picture

Read the headline only...disappointed no jail, jumping, or nailguns involved. Nothing changes.

Wed, 07/08/2015 - 07:18 | 6284159 RaceToTheBottom
RaceToTheBottom's picture

Exit Bonus?

Wed, 07/08/2015 - 07:47 | 6284195 Anasteus
Anasteus's picture

Salary prepaid up to July 2016 plus bonus for the whole 2015.

rt.com

Wed, 07/08/2015 - 07:22 | 6284171 overmedicatedun...
overmedicatedundersexed's picture

expect J Corzine will be interviewed for his position, corzine will be represented by E Holder esq in contract niggerotiations.

Wed, 07/08/2015 - 07:33 | 6284192 Peter Pan
Peter Pan's picture

Can anyone tell me what is left in this world that is not rigged? And why is the government upset when the central banks are the biggest riggers of interest rates.

Metals - rigged

Commodities - rigged

Elections - rigged

Sports games - rigged

Foreign attacks - rigged

 

Wed, 07/08/2015 - 07:45 | 6284232 Ghordius
Ghordius's picture

Peter Pan, the question, in regard to markets, is always: how much?

we were given for several decades the kool-aid that there is something like a "free market", or, better, something like that is possible, spontanously and without regulations

now I am not the right man to ask about something like a stock market. I am more knowlegdeble about things like fish markets, or vegetable markets, etc. etc.

and I can tell you that they aren't what the fundamentalist free-marketers were telling

a small example: healthy markets have often "market makers" and a healthy number of classic speculators

another small example: the market crash of 1929 was a failure because there were no market makers anymore and too many frantic (overleveraged) speculators

but a healthy market does not give the opportunities of an unhealthy market, you see?

Wed, 07/08/2015 - 07:51 | 6284260 silverer
silverer's picture

Prosecutor's office - rigged

Wed, 07/08/2015 - 08:01 | 6284310 VinceFostersGhost
VinceFostersGhost's picture

 

 

Closed for the 365 day holiday.

Wed, 07/08/2015 - 07:51 | 6284261 Peter Pan
Peter Pan's picture

Ghordius,

There is never anything that is a totally free market. Even between husband and wife.

But there comes a point where the rigging becomes the bigger part of the game and that is where it is no longer a market but a scam.

Talking of husbands and wives, this husband wakes his wife one night and offers her a glass of water and a headache tablet. The wife half asleep says: "I don't have a headache."

The husband replies, "AT LAST !!!"

Wed, 07/08/2015 - 08:08 | 6284337 Justin Case
Justin Case's picture

I think the key word here is "walked". Others weren't as fortunate.

Wed, 07/08/2015 - 09:02 | 6284563 PrayingMantis
PrayingMantis's picture

 

 

... no jail for old banksters ... Jenkins laughs his way to the bank depositing his 2015 bonus + pay till July 2016 ... if his name's Navinder, he could've had a lengthy sentence for rigging  ... 

... btw, rumour has it that 4 out of 5 banksters SUFFER from greed; does that mean one really enjoys it? ...

Wed, 07/08/2015 - 11:28 | 6284894 Amish Hacker
Amish Hacker's picture

It's not clear to me whether he's being tossed out for doing a lousy job, or if he's being allowed to leave as a reward for doing as he was told. Watch as millions of dollars in deferred compensation continue to flow, and Jenkins distances himself from the derivative meltdown which is surely coming---and which his actions as a high-level executive may have precipitated.

Wed, 07/08/2015 - 11:30 | 6284907 gregga777
gregga777's picture

US elections—definitely rigged.

Wed, 07/08/2015 - 13:09 | 6285824 ali-ali-al-qomfri
ali-ali-al-qomfri's picture

It became clear to all of us that a new set of skills were required for the period ahead. New leadership is required to accelerate the pace of execution going forward. Mr. McFarlane is ideally qualified in this respect.

new leadership is required to accelerate the pace of execution going forward and that John McFarlane is ideally qualified in this respect until a permanent successor is appointed.

This development does not signal any major change in strategy (rigging that is).

Accelerate the pace of Execution skills,

I see know how the HSBC beheading video plays into this.

Charge of the Light Barclays Brigade.

Rigging to the left of me, rigging to the right…all around Canary Wharf they thundered…..

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