How do you set right a corporate culture beset with “systematic dishonesty” – as Barclays has been described by its former chief executive, Martin Taylor?
The scandal at Barclays over its rigging of financial markets seems to represent a turning point which will require all banks to take a long, deep look at how the ways in which they operate may contradict the public interest. Were we not already in the worst financial crisis in living memory, the computer failure at RBS – which has prevented customers accessing their money and is still ongoing at Ulster Bank – would count as a monumental banking failure in its own right, evidence itself of the incompetence, negligence and greed that over many years has overwhelmed an ethos of stewardship at the major banks. On top of that, came news last week that the big four banks had committed serious failings in their mis-selling of interest rate hedges to small and medium-sized businesses
Small wonder that the Governor of the Bank of England has described the banks as “shoddy” and “deceitful”. Or that the Director-General of the Institute of Directors has said the banks “should feel deep shame for the damage they have done”.