Libor report blames Barclays culture


Britain’s troubled Barclays bank needs to further overhaul its pay policy after an “overly generous” bonus culture was blamed for problems that sparked last year’s Libor rate-rigging scandal, an independent review said Wednesday.

The report was carried out by top lawyer-turned-banker Anthony Salz, who was commissioned by Barclays in July 2012 to examine the bank’s culture in the wake of the damaging Libor affair.

The Salz review — which comprises 24 pages and cost £17 million ($26 million) to produce — found that excessive pay and short-term incentives had convinced some staff that they were “unaffected by the rules” after a long period of rapid growth.

Short-term success fed into the pay, bonuses and long-term incentive plans of the senior executives and those who made the money, especially in the investment bank,” the Salz report said Wednesday. “At a time of growth for almost everyone, the cracks were not noticed by Barclays, by the other banks or, to a significant extent, by the regulators. Without being aware of it, Barclays allowed a drift in its cultures.”