On the boardroom floor of the Barclays headquarters at Canary Wharf sit oil portraits of the bank’s Quaker founders.
Members of the English religious movement famous for its adherence to plain dressing, non-adornment and purity, stare down from the walls. It’s an incongruous spectacle anyway, old paintings in a building that is all gleaming steel and glass.
Odder, too, because of the nature of what their organisation became: a thundering global bank, a financial powerhouse raking in billions and paying out fortunes to its bosses.
What they would make of those who ran Barclays is anyone’s guess.
It was strange going there when Bob Diamond, the flashy, pugnacious American, ran the investment arm and seeing them looking down.
Diamond worked with a cast of characters who, presumably, would never dream of setting foot in a Quaker – or as they’re known, Society of Friends – meeting hall, like Roger Jenkins (schmoozer of the international rich and famous, several homes including one in Malibu) and Rich Ricci (pronounced “Richie”, given to wearing sunglasses, loud suits and hats, serial racehorse owner).
At least then, there was the more ascetic John Varley managing the entire show. In more recent years, there’s been Jes Staley, another American big hitter drafted in to take on the Wall Street giants, in charge. Most recently, in the past few days, they witnessed the difficult meetings called to discuss and approve Staley’s departure.
Staley, 64, is going because the directors became aware last Friday evening of the preliminary findings of a regulatory investigation into his links to the convicted US sex offender and financier, Jeffrey Epstein.
They got to know one another when Staley took charge of JP Morgan’s private banking operation in 2000. Epstein, who died in custody in New York in August 2019, was already a JP Morgan private client.
Staley’s task, as is the wont on that side of the industry, was to “get close” to the hugely well-connected, party-hosting Epstein. This he did, successfully, and soon Epstein was sending his wealthy chums to Staley and his team at JP Morgan.
There was nothing untoward with that – private finance is entirely reliant on personal relationships.
And no one had a better network than Epstein, as his later disclosed “black book” of contacts revealed. There, sure enough, under “S”, amid tycoons, politicians and film stars, were the details for Staley.
Fatally, Staley maintained contact after Epstein was convicted of child sex-trafficking in 2008. Epstein served nearly 13 months and Staley visited him at his office in Florida while he was on work release from jail.
'Sufficiently transparent'
In 2015, Staley joined Barclays and the UK bank assured the authorities their relationship was professional, no more.
Later, it transpired that shortly before he took over at Barclays, Staley had seen Epstein on his private island, Little St James, in the US Virgin Islands. Staley and his wife, Debora, were sailing their 90-ft wooden handcrafted yacht close by and dropped in on Epstein for a lunch lasting two hours.
There is no suggestion that Staley was involved in any of Epstein’s wrongdoing – rather it was whether theirs was closer than the distant relationship Barclays had portrayed.
Bankers are encouraged to befriend their clients, especially those who will bring them new business leads.
Indeed, sitting with them and listening to them name drop it is sometimes difficult to discern whether the person mentioned is a true “friend” or merely a business acquaintance – the lines are blurred.
The problem for Staley and Barclays is that the bank’s chief continued to see Epstein after he was convicted, when wiser folks might have ended the association. This, too, without the cache of emails between the pair handed over to the authorities from JP Morgan.
Barclays chairman Nigel Higgins confidently declared Staley had been “sufficiently transparent” with the bank about Epstein. Having probed, the watchdogs are begging to differ, so Staley has gone.
Incoming 'nice guy'
Barclays cannot maintain it was not warned. The bank had already been hit with a penalty of $15m by a US regulator after Staley was so incensed by a whistle-blower that he tried to have them unmasked.
It was a scandalous venture, and Staley, who was fined £642,000 by the UK Financial Conduct Authority, should have gone there and then. He stayed, and now look.
It’s not the end of it, either. Staley says he will contest the implication that he lied about Epstein, while shareholders vent their anger at his £2.5m payoff.
In the middle of this, it’s easy to forget, is a financial services behemoth with a new head, CS Venkatakrishnan or Venkat.
Barclays is actually in pretty good shape, thanks to booming investment banking. Staley’s strategy was to push that area, particularly equity trading, and it’s paid off.
The problem is that while it’s propelled the UK bank to six in the world investment bank rankings, displacing Credit Suisse, analysts question how long that ride can last, especially as much of the bonanza has derived from market turbulence caused by Covid-19 and from the central banks pumping in money to prop up their economies.
Investment banking accounts for 70 per cent of group earnings, up from 35 per cent before the pandemic. Should that falter, then Barclays appears markedly less robust.
That, of course, is down to Venkat to sort. He was one of a cadre of JP Morgan stars persuaded to move to Barclays. At JP Morgan, Venkat managed risk, flagging up the potential for massive losses from the derivatives trades that became known as the “London Whale” affair. He was right, they blew a $6.2bn hole in the accounts.
Venkat maintained the same role at Barclays. While others, notably Paul Compton, another JP Morgan poaching, head of investment banking and Staley’s right hand, were widely seen as more likely successors, the board went for Venkat.
They were far advanced in finding a replacement as Staley was expected to depart in the next year or so.
Venkat is low key, by common consent internally a “nice guy”, cautious, methodical, for continuity and evolution, not prone to histrionics and dramas. He’s a safety play. For that, the bank’s creators doubtless would give thanks.
UPI facts
More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions
The specs
Engine: 3.9-litre twin-turbo V8
Power: 620hp from 5,750-7,500rpm
Torque: 760Nm from 3,000-5,750rpm
Transmission: Eight-speed dual-clutch auto
On sale: Now
Price: From Dh1.05 million ($286,000)
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
THE%20SWIMMERS
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MATCH INFO
Bayern Munich 2 Borussia Monchengladbach 1
Bayern: Zirkzee (26'), Goretzka (86')
Gladbach: Pavard (37' og)
Man of the Match: Breel Embolo (Borussia Monchengladbach)
Company profile
Name: Infinite8
Based: Dubai
Launch year: 2017
Number of employees: 90
Sector: Online gaming industry
Funding: $1.2m from a UAE angel investor
Our legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
Hamilton profile
Age 32
Country United Kingdom
Grands Prix entered 198
Pole positions 67
Wins 57
Podiums 110
Points 2,423
World Championships 3
How it works
Each player begins with one of the great empires of history, from Julius Caesar's Rome to Ramses of Egypt, spread over Europe and the Middle East.
Round by round, the player expands their empire. The more land they have, the more money they can take from their coffers for each go.
As unruled land and soldiers are acquired, players must feed them. When a player comes up against land held by another army, they can choose to battle for supremacy.
A dice-based battle system is used and players can get the edge on their enemy with by deploying a renowned hero on the battlefield.
Players that lose battles and land will find their coffers dwindle and troops go hungry. The end goal? Global domination of course.
The%20Killer
%3Cp%3E%3Cstrong%3EDirector%3A%C2%A0%3C%2Fstrong%3EDavid%20Fincher%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStars%3A%C2%A0%3C%2Fstrong%3EMichael%20Fassbender%2C%20Tilda%20Swinton%2C%20Charles%20Parnell%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%204%2F5%C2%A0%3C%2Fp%3E%0A
RESULTS
2.30pm Jaguar I-Pace – Conditions (PA) Dh80,000 (Dirt)
1,600m
Winner Namrood, Antonio Fresu (jockey), Musabah Al Muhairi
(trainer)
3.05pm Land Rover Defender – Maiden (TB) Dh82,500 (D)
1,400m
Winner Shadzadi, Tadhg O’Shea, Bhupat Seemar
3.40pm Jaguar F-Type – Maiden (TB) Dh82,500 (Turf) 1,600m
Winner Tahdeed, Fernando Jara, Nicholas Bachalard
4.15pm New Range Rover – Handicap (TB) Dh87,500 (D) 1,400m
Winner Shanty Star, Richard Mullen, Rashed Bouresly
4.50pm Land Rover – Handicap (TB) Dh95,000 (T) 2,400m
Winner Autumn Pride, Bernardo Pinheiro, Helal Al Alawi
5.25pm Al Tayer Motor – Handicap (TB) Dh95,000 T) 1,000m
Winner Dahawi, Antonio Fresu, Musabah Al Muhairi
6pm Jaguar F-Pace SVR – Handicap (TB) Dh87,500 (D) 1,600m
Winner Scabbard, Sam Hitchcock, Doug Watson
The stats: 2017 Jaguar XJ
Price, base / as tested Dh326,700 / Dh342,700
Engine 3.0L V6
Transmission Eight-speed automatic
Power 340hp @ 6,000pm
Torque 450Nm @ 3,500rpm
Fuel economy, combined 9.1L / 100km
Three ways to get a gratitude glow
By committing to at least one of these daily, you can bring more gratitude into your life, says Ong.
- During your morning skincare routine, name five things you are thankful for about yourself.
- As you finish your skincare routine, look yourself in the eye and speak an affirmation, such as: “I am grateful for every part of me, including my ability to take care of my skin.”
- In the evening, take some deep breaths, notice how your skin feels, and listen for what your skin is grateful for.
Company%C2%A0profile
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