Monday, July 02, 2012
The chairman of Barclays PLC is gone and the CEO may be next. This is the result of an interest rate fixing scandal that has convulsed the leadership of the bank and cost Barclays $453 million in fines. The chairman said accurately that the failure has dealt a "devastating blow" to the bank's reputation. There is apparently no evidence that the chairman knew of the machinations but he stepped up and said "The buck stops with me." That might be his attempt to save the CEO but it might not be enough. One can admire a leader who takes responsibility rather than pointing a finger elsewhere. But, that will not save the reputation of the bank or of its senior officers. Barclays has a long way to go to return to credibility.