Banks Must Change their Culture

[mystery1]

Re: Banks Must Change their Culture

I used to work in a bank until a few months ago. I'd just say that none of these things are the fault of anyone you see in a branch. They're just as ashamed and disgusted as you are...

Did you ever sell PPI ?

M1

[Sapphire]

Re: Banks Must Change their Culture

Its amazing that people working in banks are actually saying that they are Estate Agents when asked msl:

[dogtired]

Re: Banks Must Change their Culture

Mr Diamond has fallen on his sword.:tinysmile_kiss_t4:

[Angry Cat]

Re: Banks Must Change their Culture

"It is a soap opera like no other I can remember in my 30 years (well 29 years to be precise) of reporting on the City.
On Friday night Barclays board, in an emergency meeting, decided that both Bob Diamond and Marcus Agius should tough it out: they did not need to quit their respective roles of chief executive and chairman.
Then on Saturday night, Marcus Agius took a personal decision to become the lightning rod for the criticism, to protect Barclays and Mr Diamond, so he decided to resign - which he told colleagues about on Sunday morning and was confirmed yesterday.
But the lightning continued to strike Mr Diamond. And so last night, after long discussion with colleagues, Mr Diamond decided go.
Why?
Well one Barclays source tells me he felt hounded out by MPs. He felt the government's planned parliamentary enquiry about standards in banking would be all about him, as would a longer judicial investigation demanded by Labour.
"Bob felt all his time would be spent preparing evidence, submitting testimony, thinking about the media implications, and so on" said this source. "He would have no time to run or fix the bank".
So he has quit, with immediate effect, to save the bank he loves, as it were.
And, in an extraordinary twist, Mr Agius is temporarily becoming more powerful at Barclays. He is becoming the group's executive chairman, pending the recruitment of a new chief executive.
This brings risks for Barclays. It is famously one of the most complex and large banks in the world. And Mr Agius has never had day-to-day operational responsibility for any bank remotely in its league (he was a corporate-advising investment banker at the London arm of Lazard for most of his career).
In fact Barclays sheer size and complexity was one reason why shareholders were not baying for Mr Diamond's immediate departure. They took the view that Mr Diamond, who was credited with creating the sprawling modern form of Barclays - global, huge on Wall Street - was probably the safest pair of hands to steer it away from accidents, in the absence of an obvious successor.
And, as one influential investor put it to me, this is not an easy time to be running any British bank, with the eurozone lurching from crisis to crisis and the UK in recession.
But if Mr Diamond felt that it was politicians who pushed him towards the exit, there was also a nudge from investors.
How so? Well the price they were demanding for him to stay and clean up the bank was that he should surrender some of the vast rewards he had accumulated from a culture at the bank now acknowledged to be flawed - and which investors hold him partly responsible for.
They wanted either a claw back of past bonuses and spoils from long-term incentive schemes, or the surrender of what he could earn from long term incentive plans that haven't yet vested.
If he simply gave up the maximum he could be paid from past incentive schemes, this would deprive him of up to £16m, according to the consultancy Manifest.
Or to put it another way, running Barclays was very unlikely to be anywhere near as remunerative for Mr Diamond as it has been.
Who knows whether this influenced his decision to quit?
Tomorrow Mr Diamond has the opportunity to explain himself to a subset of those very MPs who have made life so horrid for him, when he gives evidence to the Treasury Select Committee.
As you know, I am particularly interested to hear what he will say about a secret conversation he held in the autumn of 2008 with Paul Tucker, deputy governor of the Bank of England - and whether he felt Mr Tucker was in anyway encouraging Barclays to understate its borrowing costs." - said Robert Peston.

[Angry Cat]

Re: Banks Must Change their Culture

http://www.bbc.co.uk/news/business-18690102

[MIKE770]

Re: Banks Must Change their Culture

Why has Angela Knight not resigned?

Easy that one, her hand is else where.

[Angry Cat]

Re: Banks Must Change their Culture

http://money.cnn.com/2012/07/03/inve...ibor/index.htm

I wonder if Mr. Diamond will be cracking open a bottle of Bollinger tomorrow in order to celebrate Independence Day?
Probably not...!

[Angry Cat]

Re: Banks Must Change their Culture

Looks like Bob may have to give up some of his diamonds?
http://news.sky.com/story/955650/exc...iamond-bonuses

[Amethyst]

Re: Banks Must Change their Culture

http://group.barclays.com/Satellite?...&ssbinary=true

Supplementary information regarding Barclays settlement with the Authorities in
respect of their investigations into the submission of various interbank offered rates
(AMENDED)
1
Context
In anticipation of Bob Diamond’s appearance before the Treasury Committee tomorrow, 4 July, 2012, in the interest of clarity and transparency we set out on behalf of Barclays a brief summary of the salient events and the actions that Barclays has undertaken since becoming aware of them. These explanations are in no way intended to excuse any of the events that occurred. These events should never have taken place, and Barclays deeply regrets that they did.

This is the start of a long journey. We are determined that we will earn back that trust.

[dogtired]

Re: Banks Must Change their Culture

And another news just on (sorry no link on this device).
RBS have paid some direct debits twice, mainly for personal loans from what I understand.

[andrew1]

Re: Banks Must Change their Culture

And where does the fine go?

Where does the £290m fine go? It goes straight to the bank regulator, the Financial Services Authority. It's financed by a levy on banks and financial institutions and the fine will reduce the fees they have to pay.

Straight back into the banks coffers then?

[mercury-the-messenger]

Re: Banks Must Change their Culture

nobody seems to have picked up on the fact that if "diamond bobs" bonus was a mere 10 million 290 million fine divided by 10 = 29 ---

so the fine in simple terms is only 29 times "bobs bonus" --- which is ridiculous .


If you asked the man in the street how many "times " bob's bonus -- the fine should be surely the lowest conceivable should be 100x which is 1000 million --

[MIKE770]

Re: Banks Must Change their Culture

Theres a thought!

[EXC]

Re: Banks Must Change their Culture

[Magrew]

Re: Banks Must Change their Culture

And where does the fine go?

Where does the £290m fine go? It goes straight to the bank regulator, the Financial Services Authority. It's financed by a levy on banks and financial institutions and the fine will reduce the fees they have to pay.

Straight back into the banks coffers then?

I think that it should be used to establish an ethics and morals rehab facility. This should then be an option for the reviewing authority (that is eventually agreed upon and established to lead the enquiry that everyone is seeking) to "sentence" the bankers (oops sorry typo I got the first letter wrong) to reporgramme them for good. (I mean for the benefit of others, not for ever end ever)

Once they have been confirmed to have acheived a new level of enlightenment then they should be put back in charge of their old institutions, on minimum wage because now they are working for the collective good rather than money to buy shiney things (or just to count when they are bored). We shouldn't just waste their hard earned skills after all.

It will be then up to them to introduce a system of CPD (continuing professional development) for all other bankers to ensure that they all eventually become aware of the actual worth that they bring to any venture rather than the virtual worth that has screwed everything up. This will be undertaken at the aforementioned ethics and morals facility. Who will lead the instruction at the E&M Facilty, the engineers obviously.

Now what about the fiscal benefit enjoyed by the UK due to the financial services that we provide. Don't worry I have worked that out too. I will offer that forward at the next available opportunity. Basically it involves paying the producers and the true service providers a living wage.