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Barclays plc (LSE:BARC) has finally named its new Chief Executive Officer and it turned out to be one of its own.
Antony Jenkins, who, before today, was head of Barclays’ Retail and Business Banking, was chosen amongst internal and external candidates for the post in a search that, according to the bank’s outgoing Chairman Marcus Agius, was both “rigorous and thorough” – especially in the light that being top officer of British bank is not exactly glamorous these days considering the scandals that rocked the industry since the beginning of the year.
The appointment follows the announcement of Mr. Agius’ replacement in the person of Sir David Walker, who will assume office as Chairman of the Board on 1st November 2012.
First Order of Business
Jenkin’s first order of business will definitely be the investigation of the Serious Fraud Office into the terms of the deal between Barclays and Qatar Holdings LLC, which commenced yesterday. The investigation is about whether or not the bank provided sufficient disclosure as to the fees related to the capital raising back in 2008, which spared the bank from collapse during the financial crisis.
Barclays reputation has suffered since the beginning of the year when it was named by HM Revenue & Customs in a potential £500 million tax avoidance scheme. The bank also set aside £450 million as “redress exercise” related to the sale of interest rate hedging products to small and medium sized enterprises.
But what triggered the resignation of former Barclays CEO, Bob Diamond, was the interest rate rigging scandal that caused the bank to pay £290 million in penalties to US regulators and an investigation by the UK Government.
Jenkins, who became Chief Executive of the bank after 30 years since he entered the troubled institution, vowed to restore Barclays reputation and turn it again into a “go-to” bank.
“That journey will take time, we have much to do, and I look forward to getting started immediately,” Jenkin said in a statement.
On the London Stock Exchange, however, Barclays shares were down 1.6% to £1.834 at 12:30 PM GMT, with over 11 million shares traded since the market opened.
Company Spotlight
Barclays plc is a universal bank providing retail, business banking, corporate and investment banking, and wealth management. In 2011, the bank made a profit of £3.9 billion, down from £4.5 billion the year before.
