Chillin' out till it needs to be funded
The new regulatory and supervisory frameork faces its first tests in London this year as BoE eases Barclays into choosing its new chairman. Apparently in the new regime, the minister calls the shots on every decision in the industry thru myriad discretionary end of the line clauses while the Bank of England has made it clear regulation cannot be bound by distinct black and white boundaries. However, that is a simplification of the political overtones, choosing the new chief at Barclays’ had to take as protege Ricci Rich refused to step into the nomination for the next Chairman or CEO roles and the other insider Michael Rake as stopped in his tracks by another shareholder revolt close on the heels of the last say on pay vote against the bank’s incumbent’s 2011 pay structure which was still cleared.
The bank is looking outside for the CEO and as the search stretches it is likely that thru the question being raised in Parliament or thru means of media “clabacks” on the propriety of process, the ogvernment end up overplaying its hand or setting up a new cocoon of comfort for their backstop as the new regulation holds them responsible for the big picture and a revival of UK Banking one presumes as Lloyds and RBS struggle on to make profits or complete sales. Ofcourse at this sstage everyone is trigger happy with Barclays in the crosshairs, a week before Olympics begin in earnest .