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.

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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.”

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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
    +2

    Comment number 53.

    The issue is not how long it's going to take, but when are the banks going to start?

  • rate this
    +7

    Comment number 52.

    What next? Hug a bankster day?

    Well Jenkins, we're all waiting for jail a bankster day. In fact, that would make a good slogan on a T shirt. Hey Jenkins, want to invest in my money-making venture? They'd sell like hot cakes.

  • rate this
    +173

    Comment number 51.

    I can never trust someone to give me honest advice if they are being paid a bonus when they reach a sales target.

    If banks are serious about regaining trust, they will make a start by banning target based bonuses.

  • rate this
    +56

    Comment number 50.

    @30 TF - it may have escaped your notice, but banks were bailed out by the taxpayer, received billions in QE, and individual fatcat bankers working for state-owned banks are receiving bonuses at the taxpayers' expense. All of which adds up to reward for failure.

    Have you been asleep for the last 5 years ?

  • rate this
    +3

    Comment number 49.

    My trust in any of the banks, and politicians for that matter, will never be restored. Not that it was really there in the first place.

    I treat anything they say as lies. Avaricious, thieving, scheming parasitic so and so's until proven otherwise

  • rate this
    +4

    Comment number 48.

    If the Banks are ever to restore trust, we must A) see true accountability (prison), not a slapped wrist and fine for criminal activity. B) a total seperation of domestic banking from casino banking. C) banks focusing on the best interests of the customer, not the share holder D) Politicians kept off the boards while in office or for 5 years after. Then Maybe....

  • rate this
    +87

    Comment number 47.

    Rules of Banking:

    1) Make as much money as possible regardless of the repercussions.
    2) Pay yourself huge salaries
    3) Pay yourself huge bonus
    4) Don't worry about any dodgy investments etc. the government (people) will bail us out.
    5) In doubt refer to rule 1.

    until the bankers changes these rules, they cannot/will not be trusted.

  • rate this
    +3

    Comment number 46.

    It does not matter what we think or say they will all still treat us as a comodity and take their bonuses for NOT hitting there goals and loosing the banks moey

  • rate this
    +3

    Comment number 45.

    He's being vastly over-optimistic about the timescale.

  • rate this
    +1

    Comment number 44.

    Public trust or not, we still have to use them, or those of same immoral practices. Detestable, corrupt, greedy and self serving. Financers of wars, they hold the key to eradicate world famine, to house the homeless, heal the sick and bring peace to almost every nation on earth. But they dont, because it doesnt make them any money to do so.

  • rate this
    +2

    Comment number 43.

    Whether we trust them or not is irrelevant. There is no realistic alternative to the banking system so it will carry on behaving as it has done (sometimes being caught out) as there is nothing that anybody - governments, political parties or Joe Public - can do about it. An industry with a monopoly!

  • rate this
    +14

    Comment number 42.

    What he really means is that he reckons it will take about 10 years for the public to forget everything. Yeah, you wish.

  • rate this
    +5

    Comment number 41.

    As hopefully a recovery takes hold I urge all businesses and individuals not to forget those would not help at a time of need. The banks who took taxpayers money from the government to lend out but didn't. The banks who refused to continue overdrafts and therefore causing businesses to close. The banks who called in loans. The list can go on and on. Please do not forget and punish accordingly.

  • rate this
    +8

    Comment number 40.

    I will never trust any bank, especially Barclays.
    Until they are reformed into your High Street bank concerned with serving the people instead of serving themselves at the trough I won't be changing my mind.
    Look at the facts:
    Target is profit at all costs
    provide rubbish service to customers
    Dont give fair return on investments
    Greed is their guide.

    How could you trust that?

  • rate this
    +3

    Comment number 39.

    More like, 5-10 years before the public forget about all the terrible thing's we have been up to.
    We should keep pressing these banks to re-pay all that money we have had to give them for their mistakes.

  • rate this
    +1

    Comment number 38.

  • rate this
    +3

    Comment number 37.

    Then scrap it, like any sane person would do with any other failing business. Banksters full of self importance as usual.

  • rate this
    +4

    Comment number 36.

    I can't see my trust returning to the MPs within my lifetime, and I can't see the banks being any different.

  • rate this
    +85

    Comment number 35.

    On the To-day programme, Anthony Jenkins was very specific when asked about the LIBOR scandals. He said hat it was disappointing that they were found out. Surely, if their culture had really changed, he should have said that it was disappointing that they happened.

  • rate this
    +4

    Comment number 34.

    Until banks accept the need to split out retail banking from investment banking, and to maintain that separation, there is no reason to trust them.

    One of these is based on providing a service at a reasonable level of profit, the other is about ever more devious means of generating profit.

    Sadly one has corrupted the other.

 

Page 46 of 48

 

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