For a bank trying to put bad headlines behind it, that Barclays (BARC) is now under investigation regarding its whistleblowing practices is embarrassing to say the least. The Prudential Regulatory Authority and Financial Conduct Authority are investigating the bank, and chief executive Jes Staley specifically, after he tried to identify the author of a whistleblowing letter last year.
The anonymous letter related to a senior hire by the bank. "The letters raised concerns of a personal nature about the senior employee, Mr Staley's knowledge of and role in dealing with those issues at a previous employer, and the appropriateness of the recruitment process followed on this occasion by Barclays," said a statement from the lender.
Mr Staley twice asked the bank's information security team to try to identify the author, although they were ultimately unsuccessful. An external law firm later appointed to investigate the issue found that Mr Staley had "honestly, but mistakenly" believed it was permissible to identify the whistleblower.
Regulators are looking into Barclays' responsibilities in relation to Mr Staley's actions, as well as its wider systems and controls around whisleblowing. Meanwhile, Mr Staley's pay will be significantly cut and he has already been formally reprimanded by the board.
