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
    -4

    Comment number 493.

    If we want sounder banking, I advocate:

    1. Ending the Bank of England's legal monopoly on rate fixing and currency supply.

    2. Enforcing fraud laws, and removing anti-competitive laws.

    3. Removing all taxes on currency and money, including on Gold and Silver (actual money).

    4. I highly recommend F A Hayek's brilliant short essay "Choice in Currency"; free PDF:
    http://mises.org/document/3983

  • rate this
    0

    Comment number 492.

    467. never walk alone

    "Our savings money..... should be separated from Bank gambling as they will likely lose our money again."

    So you have more than £85,000 in one account held in one bank - suggest you split your money into two banks .... as per the financial compensation scheme insurance.

    Better still - check your facts before you complain!

  • Comment number 491.

    This comment was removed because the moderators found it broke the house rules. Explain.

  • rate this
    +5

    Comment number 490.

    at 470 oli... you obviously work as a trader, or for a bank. banks have destroyed this country and without us mere normal people you never would have been bailed out. i think all bankers who were doing illegal trading should have to give 50% of all previous earnings, salary/bonus back to the government, only then will banks and greedy bankers/traders understand what its like in the real world.

  • rate this
    +5

    Comment number 489.

    It's time these top executives stopped receiving such enormous salaries and bonuses which are impossible to earn, especially when they make a mess of things, in which case they should be fired with no severance. Remember it is our money used to pay them.
    Peter D

  • rate this
    +1

    Comment number 488.

    The problem is that banks couldn't even care less whether they're trusted except by the 1% wealthiest. Retail customers are captive. Direct Debits are an evil.

    To me, it's important to trust a bank's systems. These days a bank IS its systems and a couple of them fall badly short.

  • rate this
    +5

    Comment number 487.

    So the Piers Morgan lookalike reckons 10 years.

    I wonder of he has factored in the next crash when the housing bubble bursts?

  • rate this
    +5

    Comment number 486.

    I wonder what as a nation we can do?
    Some intelligent educated comments below, but we are not represented by any political party. No not revolution, but how can we (UK) be heard?
    The vast majority so need a messiah. It won't be any of the main parties nor UKIP. The big majority DO know what is needed, but to hell with us. 50 million need help ! Any Ideas?

  • rate this
    +41

    Comment number 485.

    The sad truth is that greedy bankers lent money to greedy people to buy things they couldn't afford. 125% mortages at 4x your salary and self certification being a prime example. Neither the bankers nor these people are willing to regulate themselves, so we need the government to do it or nothing will change. Unfortunately, there doesn't seem to be an incentive for the government either...

  • rate this
    +4

    Comment number 484.

    @470

    Britain is a wasteland because of the financial sector. How many people can honestly say the do a 'real job' that generates wealth? Don't for one second think banks generate wealth, they are a middle man that buys products cheap and sells high, they rip off the seller and buyer. It's manufacturing, agriculture, mining etc that generates wealth and that has gone DUE to the financial sector

  • rate this
    +7

    Comment number 483.

    In the coming years, we can only watch on as the top bankers receive hugh salaries and bonuses for putting right the mess that they received hugh salaries and bonuses for creating in the first place.

  • rate this
    +32

    Comment number 482.

    Trust a banker - NO NEVER AGAIN

  • rate this
    +7

    Comment number 481.

    5 to 10 years ? Make that 5 to 10 THOUSAND years, and that's not just Barclays, its any major bank..

    The people will never again trust any industry which keeps profits when its gambles win, and gets its money refunded by the taxpayer when its gambles lose.

  • rate this
    +3

    Comment number 480.

    Why can't banks invest in the company and raise more money for the public or for charity.... Forget about giving the"Fat Cat" bonus. Think about the greater picture for once. You can do a greater thing by giving to some worthy cause. Trust is given over time and can't be brought....

  • rate this
    +2

    Comment number 479.

    Our current economic system is entirely geared towards proles like us being dependent on the banks. It's not very practical to do day-to-day exchanges using gold bullion!

    I look forward to decentralised currencies becoming more mainstream. It means that if I lose all my money, the chances are it's my fault and not the fault of an overpaid suit somewhere in the city.

  • rate this
    +1

    Comment number 478.

    Two things;

    Firstly some on this forum think that the 'minions' working in high street branches had no part to play in bad banking practises. Not so, only three years ago LlloydsTSB tried to mis-sell us a PPI. All managers and senior staff knew this was very shady but needed to keep their jobs.

    Secondly, let's wait for the tidal wave of legal actions from these employees forced to break the law.

  • rate this
    +2

    Comment number 477.

    Restoring my friend's credit rating thanks to Barclays Bank will take six years - they deleted his account. Furthermore they fleeced him on interest that they stole from him. Now he's in credit but with a poor credit rating.

  • rate this
    +30

    Comment number 476.

    All company's top priority is making profits. That is why they are created. Banks clearly do that far more than most. Customers are the things they can rip off so they can make even more money. If ANYONE ever trusts a bank they need serious psychiatric medication. My goodness, it would almost be like trusting politicians and that WOULD be totally stupid!

  • rate this
    +6

    Comment number 475.

    Our newspapers and media outlets spend their lives criticising immigrants who haven't actually done anything wrong at all and our banksters fleece us all for billions and get off absolutely scot free.

    And some morons don't think there's an establishment protecting itself. Sigh....

  • rate this
    +1

    Comment number 474.

    Whatever happens, the politicians will usually be oblivious to it all until it's too late. Nothing changes except stupidity.

 

Page 24 of 48

 

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