Barclays’ CEO Faces Probe, Pay Cut After Whistleblower Allegations

Barclays’ top brass is in the regulatory crosshairs. Chief Executive Officer Jes Staley has been put under investigation by the UK’s Financial Conduct Authority (FCA) and the Department of Financial Services in NY for the attempted unmasking of a Whistleblower Whistleblower A whistleblower is an individual who manages to provide information or activity within a private or public organization that is deemed illegal, unethical, or not correct. In many countries, including the United States, whistleblowers are protected by law and in some cases can even recoup rewards if their information leads to successful prosecution.In the context of the financial services industry, whistleblowers play a large role in oversight, helping unmask several episodes of illicit behavior A whistleblower is an individual who manages to provide information or activity within a private or public organization that is deemed illegal, unethical, or not correct. In many countries, including the United States, whistleblowers are protected by law and in some cases can even recoup rewards if their information leads to successful prosecution.In the context of the financial services industry, whistleblowers play a large role in oversight, helping unmask several episodes of illicit behavior Read this Term.

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The dual investigation is probing Mr. Staley’s role in potentially violating whistleblower laws which seek to protect informants in both the UK and the US, according to a Bloomberg report. The allegations center on Mr. Staley responding to an anonymous complaint regarding a senior executive at Barclays – an investigation is ongoing, however the group’s board has already slapped Staley with a sizable pay cut.

On its part, Barclays has pushed back on the allegations, referencing them as ‘disconnected from the facts’. Any potential sign of violations of whistleblower law could also result in a fresh round of fines for Barclays. Regulators in the US in particular have been much more focused of late on whistleblower programs, awarding record sums for cooperation.

News of an investigation comes at a trying time for Staley, who has been trying to steer the bank at a critical junction as it faces a litany of industry headwinds and questions surrounding profitability. Since late last year, the group has been slashing its office space in London ahead of a formal Brexit Brexit Brexit stands for British Exit, or in reference to the United Kingdom’s decision to formally leave the European Union (EU) as declared in a June 23, 2016 referendum. In a more immediate sense, a tight vote and unexpected result helped drive British pound (GBP) to lows that had not been seen in decades.The day following the referendum, former Prime Minister David Cameron resigned from office where he was replaced by Theresa May, who later resigned from office on June 7th, 2019. Active Prime Minis Brexit stands for British Exit, or in reference to the United Kingdom’s decision to formally leave the European Union (EU) as declared in a June 23, 2016 referendum. In a more immediate sense, a tight vote and unexpected result helped drive British pound (GBP) to lows that had not been seen in decades.The day following the referendum, former Prime Minister David Cameron resigned from office where he was replaced by Theresa May, who later resigned from office on June 7th, 2019. Active Prime Minis Read this Term, while also offloading components of its wealth and investment management business in Asia.