Today Barclays is expected to announce a bonus pool of £1.852bn despite pre-tax profits plummeting from £5.9 billion to £246 million.

The move will inevitably reignite public anger over excessive pay at Barclays after a year in which the bank was fined £290 million for rigging Libor and has been mired in a string of scandals, ranging from mis-selling to structuring aggressive tax avoidance schemes.

Laura Willoughby MBE, Chief Executive of campaign group Move Your Money, said: "This bumper bonus pool is an outrageous reward for failure in a year that can only be described as the most shameful in Barclays' 323 year history."

Antony Jenkins, the man charged with cleaning up the bank's tarnished image after the resignation of disgraced former CEO Bob Diamond, will be laying out Barclays' new strategy to create a "socially useful bank", dubbed 'Project Transform'.

However, many insiders say that the reforms will prove to be largely cosmetic, focusing on cutting costs and streamlining the more controversial units such as those involved in tax structuring and commodity markets.

This contrasts sharply with the slash-and-burn reforms advocated by senior regulators, such as the former Governor of the Bank of England, Mervyn King.

Laura Willoughby MBE commented: "How can customers have confidence in Jenkins' claim to be building a 'better bank for customers and Britain' whilst he continues to sweep bad news under the carpet and refuses to implement the fundamental changes needed?"

A video released by Move Your Money today highlights the banks failures in 2012:

The news comes after a difficult period for Barclays, in which it set aside a further £1 billion [1] to compensate customers for mis-selling; it emerged that the Financial Ombudsman received more complaints about Barclays than any other bank; and new questions arose about the way Barclays raised money in Qatar to avoid a tax-payer bailout during the financial crisis.

New research suggests that public outrage over excessive pay continues to increase, and is one of the key factors in making people consider moving their money.

Move Your Money

Move Your Money

A recent poll by YouGov said that 38% of respondents felt unable to trust their bank until they paid "sensible" bonuses to their staff, whilst 16% of all Barclays' customers were actively thinking of leaving the bank.

Samantha Miller from London, will be moving her money out of Barclays following today's announcement.

"I've received atrocious customer service at the hands of Barclays, yet they still seem to think they are entitled to billions of pounds in bonuses. It's like they're living on another planet.

"The only way they'll get the message is if I hit them where it hurts and taking my custom elsewhere."

According to a separate poll by YouGov, up to 14 million customers may move their bank account after reforms are enacted to make moving bank accounts easier.

[1] www.cityam.com/latest-news/barclays-hikes-misselling-bill-again-35bn

Comment Here!

comments