Large banks have gone through another setback recently. Barclays endured a 25% fall in its first quarter
due to corporate restructure plans. On the other hand shares for the organization rose in the beginning
of the trading statement, which kicks off the reporting time zone for the UK banking sector.
Top dog at Barclays, Antony Jenkins, is terminating thousands of jobs, in order to avoid taking one step
forward, then five steps backwards, also to avoid a similar situation as the Libor rate rigging scandal, and
the predicted payment protection insurance (PPI) miss-selling. Will it ever end?
The Strategic mishap on the other hand did lead Barclays with more profit due to the strengthening
global equity markets. Probably resulting in the advice given by city bank, believing that this was a good
time to invest into Barclays. But would you? Potential of another massive loss always seems likely in
current climate, and there will always be hidden agendas.
Consumers are still against the high street banks, 60% of customers not trusting the high street banks to
look after their money, while 49% of these individuals think they are dishonest and a more condensed
45% of these individuals believe they are incompetent. 1% of these respondents think that senior
executives of the big banks, people like Antony Jenkins, are on the mend, and improved since the
financial crisis began.
Previous chief executives and chairman at Barclays have been put under large amounts of scrutiny.
For example the announcement that Marcus Agius stepped down as Chairman of Barclays following
revelations about Barclay’s role in manipulating interest rates.
An issue such as this has created fear between consumers and the large banks. Resulting in the creation
of, “moving your money organizations”, which has struck the states by storm, resulting n 10million
users moving all their finances to more independent, SME organizations. Who are not as tunnel minded
as large high street bankers due to the variety of investments they choose, less political ties, less
overheads, therefore likely to have more dividend payments.
- Can we ever trust bankers again? (bbc.co.uk)
- Barclays boss makes pledges to keep a hold on bankers’ pay (standard.co.uk)
- Are bankers really pawnbrokers? Vince Cable seems to think so (itv.com)
- BBC TV: Bankers (barkingatcars.co.uk)
- How the LIBOR Scandal Affects Private Equity (axial.net)
- You: Barclays tax avoidance division generated £1bn a year – Salz review (guardian.co.uk)
- Barclays report blames bank culture (bbc.co.uk)
- Barclays boss promises investors he will crack down on ‘excessive’ pay (guardian.co.uk)
- Barclays first quarter profits fall 25% (bbc.co.uk)