Restoring trust in Barclays 'to take five to 10 years'

 

Barclays boss Antony Jenkins says it will take five to 10 years to restore trust in banks, while Archbishop Welby says it will take a generation

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Barclays chief executive Antony Jenkins says he expects it to be five to 10 years before he can restore public trust in the bank.

Mr Jenkins said that people in large organisations, "want to do the right thing - it's sometimes that they perceive the right thing differently".

Mr Jenkins was guest editor of the Today programme on Radio 4 on Tuesday.

The Archbishop of Canterbury, Justin Welby - also on the programme- said that change would take "a generation."

Mr Jenkins made the comments in a session with students at Brooke House Sixth Form College in East London, at an event organised by the charity Speakers for Schools, which was founded by BBC business editor Robert Peston.

Start Quote

A picture was painted of an industry whose instincts is to bend or break the rules, when there's money to be made and no-one's looking.”

End Quote

Archbishop Welby said that there had been a "progressive loss of vision of what banks are for".

He added that while many business leaders seemed to have realised the mistakes that had been made, some were clearly still "in denial", although he declined to name them.

He added that there was still refusal to accept the continued need for cultural transformation after the 2008 financial crisis from some in the banking sector.

"I came across senior members of the City who were still absolutely in denial about what happened in 2008," he said.

Speaking to the BBC's chief economics correspondent Hugh Pym, Archbishop Welby said that the failure to accept the need for change was still prevalent in remuneration, or pay practices, in the banking sector.

He said that it was a "generational" challenge.

When asked how far away banks were from serving society as a whole, rather than just the wishes of shareholders, the archbishop said that the challenge of leadership was to make clear the urgency of a "massive cultural change" away from serving shareholders.

Archbishop Welby and Mr Jenkins also appeared together on the Today programme, and spoke of the similarities between leadership of a bank and of the Church of England.

Mr Jenkins said that they shared views on "where banks need to go".

However, Archbishop Welby also told the Today programme that the Church of England is still deciding how to get rid of £80,000 in shares that help to fund short-term or "payday" lenders, such as Wonga.

It emerged in July that the Church had the investment. At the time, the archbishop said he was "embarrassed" by it.

Helena Morrissey, chief executive of Newton Investment Management, was also invited onto the programme and asked about the role of business in the wider community.

She said that "responsibly managed" companies were more likely to perform well, and achieve a competitive advantage.

Mr Jenkins became Barclays boss in August 2012.

It has been a difficult year for banks, with growing compensation claims for mis-selling as well as investigations into rigging parts of the market.

 

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  • rate this
    +3

    Comment number 33.

    Wonder what he thinks of Tucker's Knighthood, given that Tucker had a supervisory role over markets and Libor for much of Bob Diamond's time at the helm?

  • rate this
    +3

    Comment number 32.

    Credit Unions. Local, no shareholders (except depositors) to pay and proper meetings for those involved.
    I have no interest in regaining trust in banks - is far far too late and they have only proved they are parasitic and not beneficial to our economy.

  • rate this
    +7

    Comment number 31.

    Ummmmmmm. Having banked with Barclays for over 30 years prior to loosing my job, & then being treated like a fourth class parasite. I feel the gentleman is a little optimistic in his forecast.

  • rate this
    -37

    Comment number 30.

    1. Goves Silly...

    Oh dear oh dear. How facile. You've obviously used the word "effectively" to mask your lack of understanding. So please explain how the banks "effectively" stole billions. Silly indeed.

  • rate this
    +1

    Comment number 29.

    Barclays and the whole dam industry. Its catch 22 though unless you have some space in your mattress. At least you know its safe there. It earns fractions of a % while "at risk" elsewhere.

  • rate this
    +2

    Comment number 28.

    he's optimistic isn't he? No-one ever trusted banks anyway. A horrible bunch of capitalist narcissists who the world would be better off without. I trust underneath my beds mattress more than these bunch of fraudulent egomaniacs

  • rate this
    +5

    Comment number 27.

    Confidence in banks won't return until all the greedy, incompetent senior bankers have retired with their fat pensions and been replaced by people with the customers best interests at heart. As if that's ever going to happen!

  • rate this
    +33

    Comment number 26.

    First massive error by Jenkin. Arrogance coupled with delusion. I for one will never trust Barclays again. They ripped us off knowingly and without a second thought and almost brought our country to ruin because of greed. He will change nothing by what I've heard.

  • rate this
    +5

    Comment number 25.

    Always the same. Spouting words like politicians but little, if anything, is likely to change.

  • rate this
    +109

    Comment number 24.

    "Barclays chief executive Antony Jenkins says he expects it to be five to 10 years before he can restore public trust in the bank."

    Mr. Jenkins if you think the people of this country will forgive and forget what the likes of you and your kind have done to this country in 5-10 years time you are a deluded idiot.

    5-10 years in jail for the perpetrators would be more appropriate.

  • rate this
    +25

    Comment number 23.

    This is laughable, I don't think I could ever trust bankers and politicians and massive coorporations. Its all about the money for them. People went without power this Christmas, people went without food and heating this year and these people have us over a barrel. I will never trust them!!

  • rate this
    +4

    Comment number 22.

    Trust in banks and the financial industry has irrefutably dropped to none at all. Debt-based capitalism won't be fixed over such a short term so neither will the smoke & mirrors, monopoly money shenanigans of the workshy bankers.

    The public see the banks for what they are: fraudulent, criminal, greedy, detached from the real world.

    The magic porridge pot has burnt out, and we all know it.

  • rate this
    +5

    Comment number 21.

    Is this news?

    Seems more like a PR story to make us feel warmer towards the banksters responsible for our poor economic situation.

  • rate this
    +4

    Comment number 20.

    I haven't trusted banks since I was refused a small short-term loan over 30 years ago - after banking with them for over 15 years and always remaining in the black. They've become even more mean and greedy since then and since Thatcher "liberated" the finance industry. I will NEVER trust them again and only wish I didn't have to use them.

  • rate this
    +7

    Comment number 19.

    Banks will never regain peoples trust. They will continue to pay ludicrous bonus's to already overpaid employees for investing our money and charging us for the privelege. Also whilst the high street banks continue to charge over the top interest rates to lend, and the restrictions that are imposed, people will look for other alternatives such as the credit unions who charge little or no interest.

  • rate this
    +22

    Comment number 18.

    I think we've leaned that banks are greedy, avaricious and amoral.

    I already 'trust' them to behave in a greedy, avaricious and amoral fashion.

  • rate this
    +56

    Comment number 17.

    Bankers were responsible for millions across the world losing their jobs and now living in poverty, yet they still pay themselves enormous amounts of money and carry on as if they did nothing wrong.
    They are like the wife beater who asks for forgiveness after every beating. Earn our trust, never.

  • rate this
    +51

    Comment number 16.

    No arbitrary amount of time will restore trust in banks.

    Joe Public will continue to view banks in a negative light until they sort out the fundamental issues with the way they operate and take advantage.

  • rate this
    +68

    Comment number 15.

    Barclays and the other big banks have committed not just one or two frauds; they have fostered a culture where fraud is the norm.

    Their problem in winning back trust is that NOBODY has been properly punished for their multiple thefts. Until we have a society where the directors and senior managers responsible for such acts are treated to the full force of the law then nothing will change.

  • rate this
    +34

    Comment number 14.

    Basically, Jenkins is saying it'll take 5-10 years for people to forget how badly managed and greedy UK banks are.

    Not this time. One suspsects that nobody will ever trust our financial institutions.

 

Page 47 of 48

 

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