A Silver Lining for Barclays Shareholders?

Multiple resignations is a substantial blow to the banking firm, but recent moves could eventually lead to more stable results for shareholders

Jim Sinegal 3 July, 2012 | 6:49PM
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Barclays (BARC) CEO Bob Diamond and chief operating officer Jerry del Missier followed chairman Marcus Agius in offering their resignations, becoming the latest casualties of the LIBOR-fixing scandal that resulted in a £290 million fine for the bank. It appears that Agius will stay on temporarily to lead the search for a new CEO.

We think the departure of multiple executives could be a substantial blow to the firm, as it will leave the bank directionless in the middle of a massive turnaround effort. We have long been concerned about Barclays' increasing dependence on investment banking. Diamond, himself an investment banker, seemed set to continue the firm's move in that direction. The firm's questionable behaviour with respect to LIBOR and Diamond's somewhat unapologetic stand on compensation reinforced negative stereotypes and did the bank no favours with regulators or the general public.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Barclays PLC178.90 GBX-0.28Rating

About Author

Jim Sinegal  Jim Sinegal is the associate director of the financial team at Morningstar.

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