Three reasons Barclays Antony Jenkins ‘had to go’

In a “bury-it-on-budget-day” move, Barclays announced it had ousted the man brought in to clean up the culture of the bank.

The new chairman – John McFarlane – delivered the coup de grace in a style that’s earned him the nickname: Mac the Knife.

But not before the board agreed to a less than angelic payoff of at least £2.5million.

For a bank that erected eight foot high buzzwords like “respect”, “integrity”, and “service” in its London HQ – what does mean for its culture that its saintly chief executive was sacked?

And will the bank be a better place without him?

1. Too much arrogance not enough charm – most people you speak to close to the bank concede that Mr Jenkins was “the right man for the time – not the right man for the job”. As the libor scandal blew up back in 2012, Mr Jenkins looked to be a great antidote to his American predecessor Bob Diamond.

In contrast to Mr Diamond’s brash quarterback style he brought a more English approach. Less, fast and loose, more humble and by the books.

But within a year, it became clear that while he had a different style to Mr Diamond he was no less arrogant. Rumours began to swirl that he had ruffled feathers both of his senior executives and shareholders.

2. The investment bank The investment bank used to be Barclays’ main profits generator but that seems a lifetime ago – before miss-selling fines, limits on capital and regulators on the warpath. The question for Mr Jenkins – who came from the retail side of the bank – could he reform the investment bank without hobbling profits.

The verdict has been returned and the answer seems to be no. Last year the investment bank had become the worse performing division of the group.

3. His relationship with shareholders He misread regulators in 2013, promising shareholders he wouldn’t need extra cash before being forced to raise £5.8bn. Then he upset those same investors by increasing bonuses while profits were falling. He said this was to ensure the banks best rainmakers stayed at the UK company – but nevertheless there was a brain drain to Wall Street firms. In the last year, investment banks have been enjoying a deal-making frenzy but thanks to cuts in capital and people, Barclays has not been able to take full advantage. Today’s share price move says it all. After the surprise announcement, shares in the bank jumped nearly 3 per cent, adding £1.3 billion to its market value.

The Budget

The Barclays chairman John Macfarlane also commented on changes to the tax regime for banks announced in the budget. Many banks have been lobbying to lessen the charges.

But while it was announced that the bank levy will be scrapped a new 8 per cent surplus tax charge will be applied to UK profits. Mr MacFarlane said it was like giving with one hand and taking away with the other.