Barclays found itself caught up in another controversy related to the whistleblowing incident that happened in mid-2016. Currently, 7 senior management employees in Barclays are Ex-JPMorgan employees. One among them is Tim Main, who also happens to be a former colleague and a good friend of current CEO Jes Staley. The whistle-blowing incident consists of two anonymous letters being sent to the board of directors related to a senior management employee who is hired by the bank. The letters consist of some serious issues happening in the company related to a senior management employee that was hired recently, then.
Instead of investigation the accusations mentioned in the letter, Jes Staley ordered to investigate the author of the letter. The letter mentioned about Tim Main and doubted about the hiring procedure followed to hire him. Jes Staley considers those letters as an attempt by an anonymous employee to distort the reputation of a hard working and sincere employee. Fortunately, the compliance team at Barclays treated the letters as a serious issue and decided to act upon those letters and investigate the truth behind those allegations.
Normally it’s a company policy to not to disclose the name of the letter writer and investigate the matter instead. But in this case, Jes Staley considered those allegations mentioned in the letter to be baseless and informed the grievance team to find out the author of the letter. Barclays informed both Jes Staley and the compliance team that their effort to find it the author is against the company policy and should be immediately stopped. This could have ended without the board of directors knowing about Jes Staley’s activities and attempt to defend the allegations and attempting to find the author of the letter.
But the problem aroused when there was a second whistle blowing letter sent to the directors highlighting the Staley’s breach of rules leading to the involvement of regulators and commission of Simmons and Simmons law firm. Jes Staley has a good reputation in the books of the directors because of his awesome performance to restructure the bank and produce desired monetary profits as expected. He enjoyed a “unanimous confidence” vote to retain his position as CEO. In order to punish Jes Staley for his act, the directors decided to write a formal reprimand and cut down his incentives and perks.
The Financial Conduct Authority and the Prudential Regulation Authority are currently investigating the Whistleblowing breach against Jes Staley. After the investigation, in extreme case, Jes Staley might lose his job and might be banned from working in any of the financial service company.