Barclays' CEO Investigated Over Whistleblower

Barclay's chief executive Jes Staley is being investigated by the U.K. Financial Conduct Authority in another blow to the bank's image

Derya Guzel 10 April, 2017 | 2:55PM
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Barclays (BARC) has announced that chief executive Jes Staley is being investigated by the U.K. Financial Conduct Authority (FCA), and the Prudential Regulation Authority (PRA), after his attempt to identify a bank whistleblower.

While we believe the bank's board has taken the right steps, this does raise concerns regarding the overall ethics and culture of the bank, and we see this as a blow to management's credibility. At this point, we plan to maintain our no-moat rating for Barclays, along with our fair value estimate of £2.50 per share.

We also retain our Standard stewardship rating for the bank, as our stewardship ratings reflect capital-allocation practices, and we believe our rating fairly reflects frequent upper-management changes, as well as the high-profile misconduct and litigation charges that the bank has experienced since the crisis. 

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Barclays PLC180.00 GBP0.00Rating

About Author

Derya Guzel  is an Equity Analyst for Morningstar

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