Category Archives: Revolving door

Public trust has plunged in recent years as corruption plagues politics

A recent Telegraph investigation (paywall) revealed that senior MPs and peers, including many ministers, have given access to Parliament to spouses involved in lobbying for companies and campaign groups. Karen Bradley, the Northern Ireland Secretary, and Sir Kevin Barron, the chairman of the Commons Standards and Privileges Committee (Telegraph, ‘sleaze watchdog’, are among 900 parliamentarians whose partners hold “spouse passes” entitling them to around-the-clock access to the Palace of Westminster despite their work for organisations that lobby MPs and ministers over policies and funding.

Transparency International UK (UKTI) has published a policy paper on politics and report on the Revolving Door.

They note that in recent years politics in the UK has been plagued by corruption scandals and public trust in politicians is plunging.

These scandals have exposed serious fault lines in the UK political system, and have raised particular concerns over the following:

  • The regime for parliamentary expenses
  • Lobbying of politicians by those who can apparently buy access that influences legislation spending priorities or policy decisions;
  • The revolving door between government and resources-resources-business;
  • Political party funding; and
  • Oversight regimes.

They explain that the problem lies when it happens behind closed doors and away from public scrutiny. It can lead politicians in office to steer away from good government. Their decisions can benefit those who fund them. The public interest comes second. Special interests, backed by money, may sway decision-making and undermine democracy.

Opaque lobbying practices backed up by extensive funds at the disposal of interest groups can lead to undue, unfair influence in policies – creating risks for political corruption and undermining public trust in decision-making institutions. We can attribute this factor, in part, to the crisis of confidence in politics we have seen unravel in the UK in recent years, resulting in apathy and low voter turnouts.

TI-UK believes regulation needs to address both those who seek to influence inappropriately and those who are being lobbied:

  • Money should not be a distorting factor in forming policy or gaining access to decision makers.
  • Lobbying on any particular issue or decision should be visible and have an audit trail.

Such information should be presented in a manner that is accessible and comparable for the public, media and civil society to scrutinise.

The report on UK corruption by TI-UK revealed that the British public perceive political parties to be the most corrupt sector in the UK and parliament to be the third most corrupt. It concludes there is a danger that the public will cease to regard decisions made by government and parliament as legitimate and fair; this represents a serious threat to British democracy and ultimately, to the rule of law.

 

 

 

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Mr May: yet another example of the ‘cosy relationship’ between government and the arms industry

A Liverpool reader draws attention to the news that Philip May, husband of the UK prime minister, works for Capital Group, the largest shareholder in arms manufacturer, BAE Systems, whose share price has soared since the recent airstrikes in Syria, employs. It is also the second-largest shareholder in Lockheed Martin – a US military arms firm that supplies weapons systems, aircraft and logistical support. Its shares have also rocketed since the missile strikes last week.

Selected evidence of the revolving doors between Whitehall appointments, their family and friends and the ‘defence’ industry in our archives, in chronological order:

Admiral Sir John Slater, the former first sea lord, left the military in 1998 and became a director and senior adviser to Lockheed Martin UK.

Michael Portillo, the secretary of state for defence from 1995 to 1997, became non-executive director of BAE Systems in 2002 before stepping down in 2006.

Lord Reid, secretary of state for defence from 2005 to 2006, said in 2008 that he had become group consultant to G4S, the security company that worked closely with the Ministry of Defence in Iraq.

Air Chief Marshal Sir Glenn Torpy, the chief of staff from 2006-2009, retired from the RAF last year and will become senior military adviser to BAE Systems in January.

Sir Kevin Tebbit, under-secretary at the MoD, became  chairman of Finmeccanica UK, owner of Westland helicopters in 2007 and has a variety of other defence related appointments.

Major-General Graham Binns left the military in 2010 and became chief executive of Aegis Defence Services, a leading security company.

David Gould, the former chief operating officer of the MoD’s procurement division, became chairman of Selex Systems, part of Finmeccanica in 2010.

Lady Taylor of Bolton was minister for defence equipment for a year until 2008 and became minister for international defence and security until Labour lost the general election in May.In 2010 she joined the arms contractor Thales, which is part of the consortium supplying two aircraft carriers that are £1.541bn over budget.

In 2010 Geoff Hoon, the ex-Defence Secretary caught attempting to sell his services to fake lobbyists back  alongside Stephen Byers. When he was an MP, military helicopter company AgustaWestland were awarded a billion-pound order. Now out of Parliament, Hoon earns his way as the company’s Vice-President of international business.

Andrew Tyler (above, right), the British Defence Ministry’s former procurement chief, became chief operating officer of Defence Equipment & Support (DE&S), responsible for the procurement and support of all the equipment used by the British Armed Forces. Siemens’ Marine Current Turbines unit appointed Andrew Tyler as acting CEO in 2011 and in 2012 he became the chief executive of Northrop Grumman’s UK & European operations; NG is a large American global aerospace and defence technology company. Above, still from a video made at a 2015 Defence and Security Equipment International (DSEI) arms fair

Then Business Secretary Vince Cable was one of 40 MPs on the guest list for a £250-a-head gathering in 2015 at the Hilton hotel on Park Lane. he gave a speech at the event organised by trade organisation ADS, the trade body for UK Aerospace, Defence, Security and Space industries arms fair..

Ministers were wined-and-dined in 2015 by the arms trade at a £450-a-head banquet on Tuesday night just hours after parliament’s International Development Committee said the UK should suspend all arms sales to Saudi Arabia.

In 2017, some of the senior politicians or members of their families lobbying for the nuclear industry were listed on this site (Powerbase source):

Three former Labour Energy Ministers (John Hutton, Helen Liddell, Brian Wilson)

Gordon Brown’s brother worked as head lobbyist for EDF

Jack Cunningham chaired Transatlantic Nuclear Energy Forum

Labour Minister Yvette Cooper’s dad was chair of nuclear lobbyists The Nuclear Industry Association.

Ed Davey, Lib Dem energy minister’s brother worked for a nuclear lobbyist. When failed to be re-elected went to work for the same nuclear lobbying firm as his brother.

Lord Clement Jones who was Nick Clegg’s General Election Party Treasurer was a nuclear industry lobbyist.

Tory Peer Lady Maitland is board member of nuclear lobbyist Sovereign Strategy.

Bernard Ingham, Mrs Thatcher’s press spokesperson, has been nuclear lobbyist for over 25 years.

Lord Jenkin was a paid consultant to nuclear industry.

MEP Giles Chichester is president of nuclear lobbyists EEF.

Concerns about the ‘cosy relationship between the government and the arms trade’ are expressed well by CAAT:

A disturbing number of senior officials, military staff and ministers have passed through the ‘revolving door’ to join arms and security companies. This process has helped to create the current cosy relationship between the government and the arms trade – with politicians and civil servants often acting in the interests of companies, not the interests of the public.

When these ‘revolvers’ leave public service for the arms trade, they take with them extensive contacts and privileged access. As current government decision-makers are willing to meet and listen to former Defence Ministers and ex-Generals, particularly if they used to work with them, this increases the arms trade’s already excessive influence over our government’s actions.

On top of this, there is the risk that government decision-makers will be reluctant to displease arms companies as this could ruin their chances of landing a lucrative arms industry job in the future.

 

Sources:

https://www.theguardian.com/politics/2010/dec/17/defence-minister-mod-overspend-ann-taylor

https://www.independent.co.uk/voices/comment/arms-trading-bae-systems-and-why-politicians-and-men-from-the-military-make-a-very-dubious-mix-8210897.html

https://politicalcleanup.wordpress.com/2013/05/05/the-revolving-door-from-the-ministry-of-defence-to-an-aerospace-and-defence-technology-company/

https://www.independent.co.uk/news/uk/politics/vince-cable-one-of-40-mps-on-guest-list-for-arms-dealers-dinner-in-london-10026302.html

https://www.independent.co.uk/news/uk/politics/ministers-wined-and-dined-by-arms-trade-hours-after-mps-demand-ban-on-selling-weapons-to-saudi-a6850751.html 2.16

https://politicalcleanup.wordpress.com/2017/06/23/revolving-doors-39-nao-calls-to-order-politicians-supporting-nuclear-power/

https://www.caat.org.uk/issues/influence/revolving-door

 

 

 

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Time for change: junk the Anglo-Saxon model* in 2018

The FT reports that senior executives at several of the largest US banks have privately told the Trump administration they feared the prospect of a Labour victory if Britain were forced into new elections.

It then referred to a report by analysts at Morgan Stanley arguing that a Corbyn government would mark the “most significant political shift in the UK” since Margaret Thatcher’s election and may represent a “bigger risk than Brexit” to the British economy. It predicted snap elections next year, arguing that the prospect of a return to the polls “is much more scary from an equity perspective than Brexit”.

Jeremy Corbyn gave ‘a clear response’ to Morgan Stanley in a video (left) published on social media reflecting anti-Wall Street rhetoric from some mainstream politicians in the US and Europe, saying: “These are the same speculators and gamblers who crashed our economy in 2008 . . . could anyone refute the headline claim that bankers are indeed glorified gamblers playing with the fate of our nation?”

He warned global banks that operate out of the City of London that he would indeed be a “threat” to their business if he became prime minister.

He singled out Morgan Stanley, the US investment bank, for particular criticism, arguing that James Gorman, its chief executive, was paying himself a salary of millions of pounds as ordinary British workers are “finding it harder to get by”.

Corbyn blamed the “greed” of the big banks and said the financial crisis they caused had led to a “crisis” in the public services: “because the Tories used the aftermath of the financial crisis to push through unnecessary and deeply damaging austerity”.

The FT points out that donors linked to Morgan Stanley had given £350,000 to the Tory party since 2006 and Philip Hammond, the chancellor, had met the bank four times, most recently in April 2017. The bank also had strong ties to New Labour: “Alistair Darling, a Labour chancellor until 2010, has served on the bank’s board since 2015. Jeremy Heywood, head of Britain’s civil service, was a managing director at Morgan Stanley, including as co-head of UK investment banking, before returning to public service in 2007”.

A step forward?

In a December article the FT pointed out that the UK lacks the kind of community banks or Sparkassen that are the bedrock of small business lending in many other countries adding: “When Labour’s John McDonnell, the shadow chancellor, calls for a network of regional banks, he is calling attention to a real issue”. And an FT reader commented, “The single most important ethos change required is this: publish everyone’s tax returns”:

  • In Norway, you can walk into your local library or central council office and see how much tax your boss paid, how much tax your councillor paid, how much tax your politician paid.
  • This means major tax avoidance, complex schemes, major offshoring, etc, is almost impossible, because it combines morality and social morals with ethics and taxation.
  • We need to minimise this offshoring and tax avoidance; but the people in control of the information media flow, plus the politicians, rely on exactly these methods to increase their cash reserves.

But first give hope to many by electing a truly social democratic party.

Is the rainbow suggesting a new party logo?

*the Anglo-Saxon model

 

 

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EDM: reduce the abuses of the revolving door between ministerial office and big business

Parliamentary lobbying condemned: 2010-2017

“It is the next big scandal waiting to happen. It’s an issue that crosses party lines and has tainted our politics for too long, an issue that exposes the far-too-cosy relationship between politics, government, business and money.”

David Cameron, then prime minister, promised that a Conservative government would stop the lobbying industry’s attempts through former ministers to access and influence policy. His attack on “crony capitalism” came in a speech in which he attempted to tackle Britain’s “broken politics”:

“Now we all know that expenses has dominated politics for the last year. But if anyone thinks that cleaning up politics means dealing with this alone and then forgetting about it, they are wrong. Because there is another big issue that we can no longer ignore.

The Conservative leader said that the “£2 billion industry” has a big presence at Westminster and take in some cases MPs are approached more than 100 times a week by lobbyists.”

But in 2013:

And in 2017, admirable MP Paul Flynn has sponsored Early Day Motion 1079

ADVISORY COMMITTEE ON BUSINESS APPOINTMENTS

Session: 2016-17

Date tabled: 15.03.2017

Primary sponsor: Flynn, Paul

That this House recalls former Prime Minister David Cameron’s condemnation in 2010 of politicians who are out to serve themselves and not the country by lobbying; notes the abject failure of the Government’s watchdog, the Advisory Committee on Business Appointments, to reduce the abuses of the potentially corrupting revolving door between ministerial office and big business lobbying; and calls on the Government to establish an effective watchdog that would enhance the House’s reputation for probity, removing the opportunities for former Ministers to sell their inside knowledge and contacts for financial advantage by prohibiting their lobbying for companies they influenced or regulated in their Ministerial roles.

As ACOBA, the Government’s ‘watchdog’, has failed to reduce the abuses of the revolving door between ministerial office and big business lobbying, government should establish an effective mechanism which would prevent former Ministers from selling their inside knowledge and contacts for financial gain.

 

 

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Broken Britain 10: FT, Bronwen Maddox – Parliament’s physical, moral and intellectual decay

Summary: pictures and emphases added

Bronwen Maddox, director of the Sainsbury-funded Institute for Government, comments in the FT that the physical decay of the Palace of Westminster is more than a metaphor: “Like the culture and conventions inside, the building’s failings contribute to the problems of running a respected 21st-century democracy”.

She adds that the culture is the greater problem, citing Michael Fallon’s conduct and his assertion that his inappropriate advances to women had “fallen below the high standards that we require of the armed forces” – not those of Westminster.

Via Twitter and referendums, many voters are questioning the value of a representative in parliament. The ‘firestorm’, fanned by the fragility of the government and fractures in the main political parties, is driven by MPs’ own impatient fear that something needs fixing if they are to have a chance of countering public contempt, she adds, asking: “What should be done?”

Her answer: Theresa May is right to call for a new independent regulator. The Independent Parliamentary Standards Authority, created in 2010 after the expenses scandal, covers only pay and expenses”.

Public distaste for Westminster has deep roots. The financial crash a decade ago, and the expenses scandal, bear much blame; but voters resent many of the messages that politicians feel obliged to deliver, such as the constraints on spending.

Ms Maddox believes that the strains, risks and sheer career uncertainty of being an MP have rarely been greater. Select committees, whose healthy contribution to the scrutiny of government and legislation is growing, depend on MPs putting in time to master specialist areas. She notes that the problems go deeper than MPs’ behaviour and conditions of work.

Parliament is faltering in its basic job of holding the government to account, passing well thought out legislation, and doing so in a way that commands public trust.

The rifts in the two main parties are so deep that they are barely functioning within Westminster as conventional parties. Brexit has squeezed out almost all other legislation from the timetable. A minority government’s struggles to survive mean that much debate is stalled or simply avoided.

Ms Maddox sees that people are angry, and have got used to saying so.

She thinks that the fury about sexual harassment promises to achieve what those debates failed to — forcing a change in how Westminster runs itself. But she completely ignores the most serious problem in Westminster. Lobbying by affluent corporate interests is influencing the nation’s decision-makers.

MPs and civil servants pass through the revolving door to the corporate world and vice-versa – ensuring that legislation passed generally benefits the financial/industrial/commercial world but not the vast majority of those who elected MPs to serve the common good.

 

 

 

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FT: a strange blend of truth and spleen unwittingly affirms Jeremy Corbyn’s ‘superannuated socialist’ stance

The FT’s Philip Stephens, Tony Blair’s biographer, pertinently remarks:Today’s elites should ask themselves just when it became acceptable for politicians to walk straight from public office into the boardroom; for central bank chiefs to sell themselves to US investment banks; and for business leaders to pay themselves whatever they pleased”. He continues:

“Now as after 1945, the boundaries between public and private have to change. At its simplest, establishing trust is about behaviour. . . The lesson Europe’s postwar political leaders drew from the societal collapses of the 1930s was that a sustainable equilibrium between democracy and capitalism had been shattered by market excesses.

“Citizens were unwilling to accept a model for the market that handed all the benefits to elites and imposed the costs on the poor. In the US, then president Franklin Delano Roosevelt responded with the New Deal. Europe waited until the continent had been reduced to rubble in 1945 before building what the British called the welfare state and continental governments called the European social model. Economic prosperity and political stability were the rewards.

“The present generation of politicians should learn from the experience. Defending a status quo that is manifestly unfair in its distribution of wealth and opportunity serves only to put weapons in the hands of populists . . .

“One way to start redrawing the boundaries would be to take on the big corporate monopolies that have eschewed wealth creation for rent-seeking; to oblige digital behemoths such as Google and Apple to pay more than token amounts of tax; to ensure immigration does not drive down wages; and to put in place worthwhile training alongside flexible markets”.

The difference: Corbyn would act for altruistic reasons, but thepresent generation of politicians’ concede only to retain privilege

Stephens (right) ends by saying that what we need is a social market economy – combining the central elements of a free market (private property, free foreign trade, exchange of goods and free formation of prices) and universal health care, old-age pension and unemployment insurance as part of an extensive social security system

And most of this is precisely what Jeremy Corbyn, Britain’s Labour party leader, wholeheartedly supports. Though dismissed by Stephens as a ‘superannuated socialist’, he would uphold and enhance the system presently faced with public disgust at the ‘fat-cat’ political-corporate revolving door with its rewards for failure. This disgust is combined with anger at the austerity regime imposed by those currently in power, which prevents local authorities from continuing basic public services and deprives some of the least fortunate of food and decent housing.

 

 

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A Times reader emphasises the growing awareness of the imperative to eradicate ‘the frankly corrupt, hypocritical behaviour some British MPs have indulged in for decades’

Oliver Wright, policy editor for The Times, focusses only on the tip of the iceberg – the ‘revolving door’. He reports a recommendation by the public administration select committee (PASC) that ministers and civil servants should be banned from taking up lucrative private sector jobs for two years when they leave office. (The article may be read here – possible paywall.) They said that more than 600 former ministers and senior civil servants had been appointed to 1,000 business roles. The committee wants the government to impose a two-year ban on taking up jobs that relate “directly to their previous areas of policy and responsibility”.

From many instances Mr Wright singled out:

  • Lord Hague of Richmond, who now advises Teneo, an international business consultancy,
  • Sir Ed Davey, the former energy secretary, who advises a PR and lobbying company that lists EDF Energy as a client.
  • Mark Britnell (though un-named in the article), a former director-general of commissioning at the Department of Health who became global head of healthcare at KPMG, which bids for government health contracts.

There is no reference to extra ‘jobs’ done whilst MPs are in office – except from one of The Times readers who bluntly writes: “Any MP should not be able to hold any extra job outside the House of Parliament”. Constituency work and special responsibilities – if properly attended to – would occupy an MP full time.

The parliamentary decision-making process is sometimes shown, with hindsight, to have been affected by MPs’ connections with the armaments, healthcare and tobacco  industry and many companies based in tax havens.

Property interests are less well covered, but itemised two months ago in Property Week:

 

Social Investigations reports that their research into Lords’ and MPs’ connections to private healthcare through the register of interests is complete.

Below are listed a few of the key findings. Research into the Health and Social Care bill is ongoing and more facts will be added as and when they arise.

  • 225 parliamentarians have recent or present financial private healthcare connections
  • 145 Lords have recent or present financial connections to companies or individuals involved in healthcare
  • 1 in 4 Conservative Peers have recent or present financial connections to companies or individuals involved in healthcare
  • 1 in 6 Labour Peers have recent or present financial connections to companies or individuals involved in healthcare
  • 1 in 6 Crossbench Peers have recent or present financial connections to companies or individuals involved in healthcare
  • 1 in 10 Liberal Democrat Peers have recent or present financial connections to companies or individuals involved in healthcare
  • 75 MPs have recent or present financial links to companies or individuals involved in private healthcare
  • 81% of these are  Conservative
  • 4 Key members of the Associate Parliamentary Health Group have parliamentarians with financial connections to companies or individuals involved in healthcare.

Endnote: a Times reader comments: “When I was growing up British MPs would sneer at the corrupt goings on by politicians from various pejoratively termed ‘banana republics’ and declare that such behaviour would never be tolerated in the UK. Well, it soon became obvious that this was nonsense and the issues outlined in this June article illustrate the frankly corrupt, hypocritical behaviour our British MPs have indulged in for decades, and the higher the office they occupied the more hypocritical the behaviour – proving time and again the accuracy of the saying that power corrupts and absolute power corrupts absolutely”.

 

 

 

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Revolving Doors 38: beware corporate management of HS2

Open corruption in the UK in the form of “brown envelopes” is rare. We weave a subtler web, unholy alliances in which those already wealthy entrench their position – and that of friends and family – with high salaries from consultancy and non-executive directorships supporting some political or corporate interest.

The revolving door between HS2 and CH2M

An earlier post on this website covered the report that Roy Hill, managing director of the US headquartered engineering company CH2M, had been seconded to HS2 acting chief executive on a temporary basis.

Mr Hill had worked at HS2’s offices in Canary Wharf for CH2M between 2012 and 2014 after the company won the role of development partner carrying out preparatory work.

CH2M further entrenched?

In Gill Plimmer’s FT article (February 2017) readers were reminded that Mark Thurston, an executive at CH2M, has now been appointed chief executive of HS2 Ltd, replacing the aforementioned Roy Hill. He will take over in March.

However, after a competitor threatened legal action (conflict of interest), in March this year CH2M handed back the contract to design the second phase of the £56bn HS2 — extending the London-Birmingham link on to Manchester and building a branch from the Midlands to Leeds.

HS2 fortified by lobbying consultancies MHP and Westbourne Communications

MHP employees: former politicians and civil servants/government advisers, including:

  • Jane Wilson (public relations, civil service adviser), managing director, corporate affairs team. Former chief executive of the Chartered Institute of Public Relations and reviewer for the Department for Education.
  • Charles Clarke Former Labour Party MP, hired to ‘provide advice to its team’.
  • Edward Davey – former secretary of state for energy and climate change until May 2015.

Westbourne Communications co-founded and run by Conservative James Bethell, the 5th Baron Bethell. Other environmentally damaging causes supported include fracking and extending Birmingham airport. As Transport secretary, Philip Hammond attended the launch of Westbourne’s Campaign for High Speed Rail, when rail companies were asked to pay £10,000 each to a fund. At a dinner organised by Westbourne in November 2012, transport minister Simon Burns said the campaign’s efforts were “greatly appreciated”. HS2 champion Lord Adonis has also spoken at the firm’s events. Westbourne provided the secretariat and press office for the all-party group for high-speed rail, paid for by rail and commercial interests: TSSABruntwoodSouth West TrainsAbellioEurotunnel and Core Cities. With the passing of the HS2 bill (first phase) this APPG has now been disbanded.

The records of potential HS2 suppliers also need to be scrutinised

The president and managing director of Alstom Transport UK & Ireland, which was bidding to provide HS2 trains, stepped down over corruption allegations relating to the supply of trains to the Budapest Metro. Other legal actions facing the company relate to bribery allegations in connection with transport contracts in New Delhi, Tunis, Lithuania and Warsaw.#

 

 

 

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Broken Britain 3: ‘strong and stable government’: by the rich, for the rich, at the expense of the rest

Government for Britain’s rich: strong and stable; for its 99%: a crumbling NHS and farming sector, expensive public transport, vanishing libraries and cuts for the young, the poor and the frail .

Those who are ‘just about managing’ live in the only ‘big advanced economy’ in which wages contracted (2007-2015) while the economy expanded, the cost of living rose and multinational profits rocketed.

Pett lists the end goals which would benefit the 99% and the wreckers

As Eisenhower said, we need a humane government which would focus on the well-being of all, not the profits of the few and stop being complicit in slaughter . . .

 

and we should strengthen local/regional economies.

 

Close the global casino and the revolving door between big business and government

and offer all, especially superfluous managers and young commodity traders, socially beneficial work

 

 

 

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Whistleblowers 11: the ones that got away?

In Britain whistleblowers are usually made to suffer, despite the nicknamed ‘Whistle-blowers Act’: There have been several general articles about whistleblowing on this site & others focussing on some brave individuals who suffered for revealing unwelcome truths. Before this site was set up there were health sector whistleblowers; Marta Andreasen & Paul van Buitenen also revealed shocking cases of EU financial mismanagement and suffered for it.

 Just for the record – covered profusely in MSM:

Professor Prem Sikka tweeted about a case involving Barclays chief executive Jes Staley, who started to work for Barclays in December 2015 and later recruited at least four senior executives who had worked with him at JPMorgan Chase. In June, when Barclays received two anonymous letters making allegations of what the bank describes as “a personal nature” about one of the investment bankers, Mr Staley asked Barclays’ security team to track down the author, though the bank’s compliance department had logged the letters as potential whistleblowing.

Barclays’ board only learnt of Mr Staley’s efforts to identify the tipster in January when a second whistleblower, this time a Barclays’ employee, came forward and directly contacted its outside directors.  In a letter, the Barclays employee pointed to flaws in the bank’s whistle-blower procedures and cited Mr. Staley’s attempts to unveil the anonymous critic.

The bank said it had instructed law firm Simmons & Simmons to conduct an investigation which found that Mr Staley erred in trying to identify the authors of the letters, who in the end were not unmasked. Barclays’ board also informed the FCA and PRA.  Barclays said it has given Staley a formal written warning and will slash his salary. The bank has promised to review its whistleblowing programme.

The Prudential Regulation Authority and the Financial Conduct Authority are now looking into the matter in Britain, while New York’s Department of Financial Services and the US Department of Justice are conducting investigations in the United States.

Paul Moore, a former HBOS banker, was dismissed from HBOS in the run-up to the financial crisis in 2004 for whistleblowing – warning that the bank was running risks it did not understand. He told The Mail on Sunday: ‘Staley should be fired. Trying to find out the identity of an anonymous whistleblower where the motivation is obviously to try to crush them is gross misconduct.’

It requires real courage for whistleblowers to act on what they see, especially in the UK. One FT article notes that a recent survey by the Ethics Resource Centre of employees in 13 countries found that 63% of British employees who reported wrongdoing experienced retaliation, second only to India and far worse than the 36 per cent global averageMore detail here:

 

 

 

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