Barclays, Treasurer, Guy Johnson discussed on Bloomberg Daybreak: Europe
Look back at what it was like during those days at the height of the financial crisis. We spoke with the next group. Ceo, Michael Spencer. Bloomberg's guy Johnson started by asking him. If he can remember where he was when he found out about the news of Lehman Brothers collapse. The conservative party conference two thousand eight conservative party conference in Birmingham. That point was treasurer of the conservative party conference. Mr Cameron who was not Prime Minister, Mr Osborne, who was not chancellor chancellor. Up there with them. And of course, the news came out that morning. Created I would say drama everywhere. Even if you went in the financial market it was from page news. Of course, I was beautiful speech that he thinks so I had to stay there. I, but I do remember sanctuary at the end of the day because all no cap in those days, you will recall and indeed the big show vica and the whole folder financial. Stocks took a massive dive, including our share price taking took a major hammering. Although we. Weren't exposed to Leeman in the negative way. Particularly, and I remember saying to a good friend of mine. On down some paper hundred billion quit today. Particularly pleasant experience surprise you. Remember? Longtime ago. Did you? Are you ready for did? You see it coming? Was it something that the financial sector the conversation that you're having within the business and externally to people anticipate that this was going to be a reality audit everything. You know, what at some point somebody's going to step in this company like? It was a it was a suspended reality environment. If you recall, I mean, I remember sitting there watching the Barclays share price tumbled down to know fifty p actually genuinely wondering at the time. Is it possible the Barclays don't survive? This is it possible. It was a proper old. I was never nineteen twenty nine. But I imagine that was appear as well where things were just collapsing and people the confidence was being undermined not necessarily by substantially issues with fifties. Singer share price collapse. Yes. I think most of the day probably wouldn't let go both past for being effectively saved. Other financial institutions that have support. And I think I think most that surely I will be found. I think it's arguably arguable that with the benefit of hindsight, maybe Leeman should have been saved again back to the kind of the events immediately surrounding around what happened I e the trading floor that you have is a very vocal kind of noisy place. There was there was I'm sure a lot of talk about what was going on you you were up in Birmingham. But nevertheless, I'm sure you kind of quickly back down pretty quickly came back down pretty quickly. What was it like on the phone? What I what what were you guys talking about? What were kind of the men and women who are working on the floor sort of saying about what this is like at that point. I mean, it was a bizarre environment. Because. Olo the system seems to be crumbling around us. There's a lot of business going on because rates were very volatile and people have risked to manage. What was gonna happen to interest rates? We now know what happened to interest rates interest rates came down like that and stay down very firmly. So there was a lot of movement in the market and people saying, you know. Who can I trade with to transfer? My wrist were credit limits. Good with the Barclays and the Goldmans or whoever that moment pretty much a significant proportion financial market, look potentially vulnerable Livonia. Handful of banks. Who looks absolutely rock solid that time. So it was a very bizarre environment where funnily enough to trading volumes that we did in the subsequent weeks was surprisingly robust, but the overall ecosystem was clearly crumbling steadily. And.