Reports of Barclay’s Chief Executive Joes Staley’s efforts to locate and unmask the company whistleblower have apparently kicked off a major investigation by the Department of Justice to see if there was a violation of the Dodd Frank Act’s whistleblower protections. The letter was critical of the hiring of a senior bank exec. The New York Post has reported that Staley asked bank staff to contact postal inspectors to trace the author of the whistleblower letters sent to Board members after they hiring of Tim Main.
Barclay’s Board concluded that Staley had made an “honest” mistake believing he could identify the whistleblower, whose identity has not been discovered. They reprimanded Staley and adjusted his compensation significantly. Depending on what happens with the numerous investigations now pending, this may not be enough, especially of the scandal has a significant effect on the stock price.
Jeffrey Newman represents whistleblowers.