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LONDON, April 10 British regulators are
investigating Barclays Chief Executive Jes Staley and
the bank itself over the handling of a whistleblowing incident,
the bank said on Monday.
The investigation by the Financial Conduct Authority and the
Prudential Regulation Authority relates to an attempt by Staley
last year to identify the author of a letter that was treated by
Barclays Bank Plc as a whistleblowing incident, Barclays said in
Barclays said it has formally reprimanded Staley and has
promised to cut his variable compensation, but will support his
reappointment at the bank's annual general meeting on May 10,
the statement said.
The regulators are also looking at Barclays' systems
and controls and culture relating to whistleblowing, the bank
Barclays' board first heard of Staley's attempt to identify
the author of the letter in early 2017, after the issue was
raised by an employee, Barclays said.
The board instructed law firm Simmons & Simmons LLP to carry
out an investigation led by Gerry Grimstone, the bank's deputy
chairman, and also notified the regulators.
"The investigation ... found, and the Board has concluded,
that Mr Staley honestly, but mistakenly, believed that it was
permissible to identify the author of the letter," the bank
The author of the letter was not identified.
"I have apologised to the Barclays Board, and accepted its
conclusion that my personal actions in this matter were errors
on my part," Staley said.
The board will issue a formal written reprimand to Staley
and cut his variable compensation,
The board will also look into the position of other
employees involved in the incident, the bank said.
"I am personally very disappointed and apologetic that this
situation has occurred, particularly as we strive to operate to
the highest possible ethical standards," Barclays chairman John
McFarlane said in the statement.
(Reporting by Carolyn Cohn; editing by Jason Neely and Louise