LONDON/NEW YORK: Barclays allegedly pressured a former senior trader in the United States to ignore internal risk controls and then forced him out when he raised complaints, according to a public court document seen by Reuters, the latest in a string of allegations about the British bank’s handling of whistleblowers.
Brian La Belle, the bank’s former head of commercial real estate trading, alleged his bosses compelled him to perform trades and contact clients in August and December 2017 while he was on mandatory leave, contrary to regulations.
He also alleges in the court filing that managers called him to complain that he had raised concerns in emails about being made to work during ‘block leave’, a period of absence required by regulators to ensure bosses can detect rogue trading and other potential misconduct.
When La Belle raised concerns with compliance officials at the bank he was first sidelined before he was sacked in Aug. 2018, he alleged in New York district court filing dated April 29.
A spokeswoman for Barclays declined to comment, citing a policy of not commenting on ongoing legal proceedings.
La Belle’s alleged ousting came at a time when the bank’s handling of whistleblowers was under intense scrutiny after its Chief Executive Jes Staley was in May 2018 fined by British regulators for attempting to unmask one in contravention of rules designed to protect them.
The 1.1 million pound ($1.4 million) fine ordered by the Financial Conduct Authority (FCA) and the Bank of England’s Prudential Regulation Authority was the first such punishment imposed on a sitting CEO of a major British bank. It cast a pall over Staley’s efforts to show the bank has improved its culture since the 2008 crisis.
Barclays launched a review of its whistleblowing procedures in 2017, and in its 2018 annual report published in February this year it said it had implemented recommendations from the review including creating a centralized team to review all complaints.
After La Belle complained internally about being asked to complete trades while he was supposed to be on leave, he said that Larry Kravetz, one of his managers, asked him on a phone call: “How could you be so f***ing stupid to put that in an email.”
Kravetz could not immediately be reached for comment.
La Belle said he raised further complaints about separate deals that he said were too risky but were pushed through nonetheless, before the bank ultimately fired him. He is seeking reinstatement and over $10 million in compensation.
The case continues in New York on Tuesday.
Former Barclays trader claims bank fired him for misconduct after whistleblowing
Former Barclays trader claims bank fired him for misconduct after whistleblowing
- Brian La Belle, the bank’s former head of commercial real estate trading, alleged his bosses compelled him to perform trades and contact clients while he was on mandatory leave
- When La Belle raised concerns with compliance officials at the bank he was first sidelined before he was sacked in Aug. 2018
Airlines across Middle East, Asia extend flight suspensions for 3rd straight day
RIYADH: Airlines and airport operators across the Middle East extended flight suspensions for a third consecutive day after US and Israeli strikes on Iran triggered widespread airspace closures, disrupting global travel routes.
Major Gulf hubs halted operations as authorities kept sections of regional airspace closed, forcing carriers to cancel thousands of flights and reroute long-haul services linking Europe, Asia and Australia.
This comes as flight cancellations affected seven airports across the Middle East on March 1, including Dubai and Abu Dhabi in the UAE, Doha in Qatar, and Manama in Bahrain.
Emirates said in a statement that, due to multiple regional airspace closures, it has temporarily suspended all operations to and from Dubai until 3:00 p.m. UAE time on March 3.
“The situation remains dynamic and is assessed continuously. We urge all customers to review the latest operational updates on emirates.com and check their email for any notifications about changes or cancellations to their flights before travelling to the airport,” the airline said.
Hamad International Airport said flights remain suspended and will resume once the Civil Aviation Authority announces the reopening of Qatari airspace. The airport advised passengers not to travel to the airport and to contact their airlines for updates.
The closures disrupted key hub airports in Dubai, Abu Dhabi and Doha. Emirates, Qatar Airways and Etihad — which operate from these hubs — normally handle around 90,000 passengers daily, with even more traveling to other Middle Eastern destinations, according to aviation analytics firm Cirium.
The disruption has compounded volatility in airline shares amid concerns over higher fuel costs and prolonged operational uncertainty.
Ipek Ozkardeskaya, senior analyst at Swissquote, said: “The weekend was marked by tensions between the US, Israel, and Iran, leading to hundreds of explosions targeting broader Middle East countries as well, including the UAE, Saudi Arabia, Qatar, Bahrain and Kuwait.”
He added: “The flare-up was predictable; markets had been preparing for weeks as US warships advanced to the region preceding the explosions.”
Asian airlines shares plunge
Asian airline stocks slid on March 2, with Hong Kong’s Cathay Pacific, Australia’s Qantas, Singapore Airlines, and Japan Airlines falling more than 5 percent after the escalation disrupted travel flows and heightened concerns over fuel prices, Asharq Bloomberg reported.
Qantas shares dropped as much as 10.4 percent to a 10-month low at the Australian market open before trimming losses to trade down nearly 6 percent.
Other carriers, including Japan Airlines, Air China and Malaysia Airlines, also declined.
Cathay Pacific canceled all flights to the Middle East, including passenger services to Dubai and Riyadh, until further notice.
Singapore Airlines suspended flights to and from Dubai until March 7, while Japan Airlines halted services between Tokyo and Doha for the time being.
Flight data provider VariFlight said Chinese airlines have canceled 26.5 percent of their services to and from the Middle East scheduled between March 2 and 8.
