Barclays Hires Former FSA Chief Sants as Compliance Head
Barclays Plc (BARC), the bank fined for Libor manipulation, hired former Financial Services Authority Chief Executive Officer Hector Sants as head of compliance and government and regulatory relations, a newly created role.
Sants, 56, will report to CEO Antony Jenkins and will manage compliance employees at the bank, London-based Barclays said today in a statement. His compensation wasn’t disclosed. Starting on Jan. 21, Sants will also oversee relationships with governments and regulators, including his former employer.
“I left the FSA with the intention of finding a role which would allow me to put into practice the experience I have gained in both the public and private sector,” Sants said in today’s statement.
Barclays, Britain’s second-largest bank, was fined a record 290 million pounds ($468 million) in June for submitting false London and euro interbank offered rates, leading to the departure of CEO Robert Diamond, Chairman Marcus Agius and Chief Operating Officer Jerry Del Missier. Jenkins is seeking to overhaul the culture of the bank following scandals including wrongly-sold loan insurance.
Sants, who stepped down as head the U.K. financial regulator in June, warned Agius in 2010 the FSA could “re- assess”Diamond’s suitability for his position amid the Libor scandal, in an e-mail disclosed to parliament on Sept. 19.
Sants at the time told Agius the regulator had concerns about whether Rich Ricci, who succeeded Diamond as co-CEO of Barclays’s investment-banking unit, had “the depth of skills” needed to oversee the operation together with co-CEO Del Missier.
A plan to save Lehman Brothers Holdings Inc. in the midst of the 2008 financial crisis fell through when Sants blocked an attempt by Barclays to buy some of its assets, according to “In Fed We Trust,” the book by David Wessel, a Wall Street Journal reporter.
Sants announced his departure from the FSA in February 2010, but agreed to stay on after the government proposed handing supervisory powers to the Bank of England. He resigned again in March. Before joining the FSA, Sants was an executive at Credit Suisse Group AG (CSGN), where he led the bank’s European, Middle East and Asia business.
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