Most corporate annual reports specialize in self-promotion and accentuating the positive. But the 2012 annual report of Barclays reads like a mea culpa.
Fortune magazine reports that when Barclays was fined a whopping $453 million by regulators in the U.S. and U.K. based on allegations that the bank manipulated the Libor rate - which affects the prices banks charge each other to borrow money and influences fees for various loans and home mortgages - CEO Antony Jenkins vowed to overhaul and shake up the bank's culture.
Of course, Barclays wasn't alone. UBS and Royal Bank of Scotland were fined in the interest rate-rigging debacle.
The opening pages of Barclays's 2012 annual report are clear and explicit about what must be done: 'Changing Barclays culture is a critical component in rebuilding trust and real change is required'.
Transforming the culture of a financial services company like Barclays from one where flouting rules is pervasive to one where bankers follow regulations is no simple task.
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image: © Dick Johnson