John Varley deserves credit - and not just for losing ABN Amro

Chris Blackhurst
9 Feb 2009

At some point, the City is going to have to start believing Barclays. Until now, during this crisis, the sceptics have been waiting for the true horror to emerge.

But as the months have passed it simply hasn't happened. Yes, Barclays is of a similar nature to those others caught in the maelstrom.

Yes, it's got a high level of British exposure and this country does appear to be faring more badly than others.

Yet, either by judgment or luck it seems to be relatively unscathed. In truth, the credit lies with both. But for the intervention of Sir Fred Goodwin, Barclays would by now be struggling to absorb ABN Amro.

While John Varley will claim, rightly, that his offer was different from Royal Bank of Scotland's - that his was based on shares, not cash - he must send up a prayer that he's not sitting atop a newly-formed giant European bank at this juncture.

Nevertheless, while that can be put down to good fortune, Barclays, along with HSBC, does appear to be better managed than some of its British rivals.

In acquiring Lehman's North American operations it has got a bargain - all credit to Varley and Bob Diamond, Barclays Capital chief.

Similarly, a firmer hand does seem to have been on the tiller - Barclays does not look to have gone as mad on subprime as others, its exposure to the toxic stuff is not so great.

Famously, the bank has not had to go cap in hand to the taxpayer. All in all, Varley and his chairman Marcus Agius are entitled to feel they should be getting acclaim - not raised eyebrows or nudges and winks.

Certainly, judging by the rise in the share price today, that is the prevailing wider mood.

Barclays is right to draw a line between itself and the loss-making banks.

It must be careful to avoid sounding too smug, though - populist politicians and the public are gripped with headline numbers and are not likely to make the same distinction or want to get into detail.