James Barty

  • Senior Consultant to Policy Exchange, Financial Policy
  • james.barty@policyexchange.org.uk
  • 0207 340 2650
James Barty

Biography

In November of 2011 James Barty became the Senior Consultant to Policy Exchange on Financial Policy after almost 25 years in the City. He worked at NatWest, Deutsche Bank and then a hedge fund, Arrowgrass Capital Partners, in that time. He started as a corporate banker before switching to economics in 1990 when joining Morgan Grenfell (subsequently integrated into Deutsche Bank in 1994). He was Chief UK Economist, Co-Head of European Economics and then co-head of Global Economics before switching to equity strategy in 2001. He headed DB's European Equity Strategy group before going to run Global Equity Strategy and Asset Allocation. In 2006 he moved to the hedge fund business initially inside DB and then as an independent fund from 2008 onwards, where he was a partner responsible for macro strategy and as well as working on the risk and hedging for the fund. The fund was a multi strategy fund, dealing with bonds, equities, derivatives, distressed debt and M&A. As a result James brings a wealth of experience to Policy Exchange as we seek to tackle an area often under resourced by think tanks.

Related Publications

  • Capital Requirements: Gold plate or lead weight?

    15 March 2013

    Bank lending to private companies in the UK has fallen in every single year since the financial crisis, dropping a staggering £57 billion since 2008. Capital Requirements: Gold plate or lead weight? says that the primary reason for this lack of credit is due to the financial regulator’s desire to raise the capital requirements of UK banks.

  • Reform of the Bank of England: A new Bank for a new Governor

    03 December 2012

    Reform of the Bank of England argues that the Bank of England's focus on monetary policy meant that it was not prepared for the impact of the freezing up of the financial markets and the collapse of some of the UK’s biggest banks. The report argues that without major reform to the Bank, the new financial regulatory regime currently going through Parliament risks being as flawed as its predecessor.

  • Executive Compensation: Rewards for success not failure

    04 July 2012

    All company directors should be forced to repay bonuses if they underperform. Executive Compensation advocates introducing “clawbacks” to all bonus contracts as the best way to end rewards for failure in the boardroom. Clawback would also be an effective way of ensuring shareholders are able to reduce the outgoing pay of a poor performing director who had decided to resign.

  • Default ThumbPolicy Exchange's response to the BIS Shareholder Voting Rights Consultation

    26 April 2012

    Shareholder votes on executive pay packages should only become binding if a company fails to secure the necessary threshold of votes in two consecutive years. In a response to the BIS consultation on executive compensation, James Barty says the government’s proposals to make shareholder votes on remuneration policy binding is an overreaction.

  • Sovereign Default: Lessons for Europe from Argentina’s default

    22 March 2012

    Sovereign default has become a reality in Greece with profound implications for the rest of the Euro Area and the international financial system. This paper looks at what lessons can be learnt by examining the last major sovereign default in Argentina 2002.

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Related Events

  • Reform of the Bank of England: How should it change to meet its new responsibilities?

    12 September 2012

    The BoE is is inheriting a lot more power to regulate the financial sector, in addition to its monetary policy responsibilities. Yet its track record in the run up to and during the financial crisis was far from perfect. This event will discuss potential flaws with the Bank's structure, giving stronger accountability powers to the Bank's Court and the next choice of Governor.

  • Plan E for Emergency: Is the UK economy able to grow amid the euro crisis?

    18 July 2012

    The euro area is under immense strain and the UK economy is feeling the effect. The future is uncertain, but it seems clear that the negative effects on the UK of eurozone breakup are potentially huge. With this in mind, the government needs to be ready to take emergency measures to support the economy. This event will ask whether such measures are likely to be needed and, if they are, what should they look like.

  • Rewarding success not failure: What can policymakers do to reform executive pay?

    24 May 2012

    The government's consultation process on the reform of executive compensation is now well underway and submissions are starting to be made. Policy Exchange's own proposals for reform are due to be published in May. This event brings to the table the thoughts of opinion formers in Government and opposition, Policy Exchange and one of the world's leading legal firms on the subject.

  • Financial regulation and economic policy in a European context

    24 April 2012

    As part of its programmes of work on financial policy and on growth in the UK economy, Policy Exchange is hosting a half day international summit which will assess the importance of EU economic and financial policy to the UK economy and in particular to the competitiveness and future of the UK financial services sector.

  • Executive Pay: Designing rewards for success not failure

    12 January 2012

    This discussion will examine how we can balance the need to reward success and attract top executives with the need to ensure that failure brings no reward, the level of say shareholders and compensation committess should have over pay and the role of regulators and the government in cases where executives are being overly compensated.

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Related News

  • David Cameron raises prospect of 1980s-style RBS sell-off

    16 May 2013

    The Guardian refers to an upcoming banking report by Policy Exchange, which will examine various possibilities for selling off RBS and Lloyds, including the option of a mass share distribution to the public.

  • Cameron backs plan to give RBS shares to public

    16 May 2013

    The Times refers to an upcoming report by Policy Exchange's James Barty which will consider various options the government could sell off RBS and Lloyds, including the possibility of a mass share distribution to the public.

  • Cameron hints at move to get RBS in good health for sale

    16 May 2013

    Policy Exchange's upcoming banking report which will look at different options for selling off RBS and Lloyds, including the possibility of a mass share distribution to the public, is trailed in The Financial Times in an article discussing David Cameron's plans to prepare RBS for sale as soon as possible.

  • Come and get ’em: plan to offer RBS shares at no risk

    15 May 2013

    In a front page piece in the business section of The Times, banking editor, Sam Coates, trailed upcoming report by Policy Exchange which will examine how the government might sell off the UK's nationalised banks RBS and Lloyds, including the possibility of a mass share distribution to the public.

  • Think-tank calls for ‘Tell Sid’ style sell-off of RBS and Lloyds

    06 May 2013

    The Financial Times trails findings from an upcoming Policy Exchange report by James Barty, Senior Consultant for Financial Policy, which will examine various options for selling off RBS and Lloyds, including the option of a mass share distribution to the public.

  • Don’t derail the recovery, Chancellor tells Bank

    01 May 2013

    The Times quotes James Barty, Policy Exchange's Senior Consultant for Financial Policy, in response to George Osborne’s letter to Sir Mervyn King warning the Financial Policy Committee not to derail economic recovery by implementing far-reaching financial regulations. James said the letter gives a clear message to the FPC, arguing that the Bank of England has been too focused on the safety of banks at the expense of credit growth.

  • Anger as banks are urged to raise extra £25bn by Bank of England

    28 March 2013

    James Barty, Policy Exchange's Senior Consultant for Financial Policy, is quoted in The Independent saying the Bank of England's recent announcement calling for banks to raise £25 billion extra in capital requirements will prevent economic recovery. Citing findings from recent Policy Exchange report Capital Requirements, James said increasing capital ratios even further will prevent banks from lending to small businesses.

  • Blow to borrowers as banks are ordered to stockpile an extra £25billion to prepare for another financial crisis

    27 March 2013

    The Daily Mail quotes Policy Exchange's Senior Consultant in Financial Policy, James Barty, speaking in response to the Bank of England's announcement that banks must increase their capital requirements by £25 billion. James said raising capital requirement will stop banks lending, as shown in recent Policy Exchange report Capital Requirements.

  • Banks Told To Raise Capital By Financial Policy Committee To Cushion Against A Crisis

    27 March 2013

    James Barty, Policy Exchange's Senior Consultant for Financial Policy, is quoted in The Huffington Post arguing that the Bank of England's announcement that banks must raise their capital requirements by £25 billion will stop banks lending and halt economic growth. James noted that since 2008 bank lending has fallen by £10 billion each year due to high capital requirements, as shown in Policy Exchange report Capital Requirements.

  • Bank of England’s £25 billion call ‘will hurt recovery’

    27 March 2013

    The Evening Standard quotes Policy Exchange's James Barty, Senior Consultant for Financial Policy, speaking in response to the announcement by the Bank of England that UK banks must raise £25 billion more in capital requirements. James cited findings from Policy Exchange report Capital Requirements, which said bank lending has fallen by £10 billion each year since 2008 due to capital requirements being set too high.

  • James Barty on BBC Radio 5 Live

    27 March 2013

    James Barty, Policy Exchange's Senior Consultant for Financial Policy, appeared on BBC Radio 5 Live responding to the announcement by the Bank of England that UK banks must raise a further £25 billion in capital requirements. James cited findings from Policy Exchange's report Capital Requirements that increasing capital requirements will cause banks to step lending and halt economic recovery.

  • Bank safety rules are restricting lending and growth, say critics

    18 March 2013

    The Independent covers Policy Exchange report Capital Requirements, which argues high capital ratios are preventing banks from lending to private companies, with a decline of £57 billion since 2008. Author of the report James Barty, Policy Exchange's Senior Consultant for Financial Policy, is quoted criticising the fact that the debate around banks is only about safety, rather than whether capital requirements are preventing recovery.

  • Tough banking rules have ‘wiped out’ gains from QE

    18 March 2013

    The Times covers findings from recent Policy Exchange report Capital Requirements in a front page story in their Business section. The report says UK banks are not lending to private companies due to capital requirements being too high. Author of the report James Barty, Senior Consultant for Financial Policy at Policy Exchange, is quoted discussing the implications.

  • Banks awash with cash but small firms see none of it

    05 March 2013

    James Barty, Policy Exchange's Senior Consultant for Financial Policy, is quoted in The Times discussing why small businesses are struggling despite the government’s efforts to ease credit conditions. James argues that regulators should ease banks' capital requirements in order to get them lending again.

  • Taking a pop at CoCos may prove costly, RBS is warned

    25 February 2013

    James Barty, Policy Exchange's Senior Consultant for Financial Policy, is quoted in The Times discussing capital raising for RBS. James argues that if RBS bows to pressure from regulators to raise money using an expensive form of convertible debt by buying CoCo bonds, this would only be a drain on the bank.

  • Mark Carney will have too much power as Bank of England Governor, warns Adam Posen

    04 December 2012

    Policy Exchange's recent report Reform of the Bank of England by Senior Consultant for Financial Policy James Barty, is cited by The Daily Telegraph in an article discussing the priorities facing the Bank. The report calls for more power to be ceded to the Bank's Deputy Directors and for greater integration of the various committees.

  • Mark Carney's tricky in-tray

    01 December 2012

    Writing in The Sunday Telegraph, Kamal Ahmed covers recent Policy Exchange report Reform of the Bank of England by Senior Consultant for Financial Policy James Barty. Recommendations for reform include integrating the Bank's various policy committees and having greater levels of external influence.

  • Mark Carney must shake-up Bank of England to avoid 'disaster', warns Policy Exchange

    01 December 2012

    The Sunday Telegraph cites findings from recent Policy Exchange report Reform of the Bank of England by James Barty, Senior Consultant for Financial Policy at Policy Exchange, which sets out recommendations for ways to reform the Bank under the new Governor. James is quoted setting out key findings from the report, including amending legislation to give the external members of the MPC and FPC a majority so the Bank insiders could be outvoted.

  • Treasury ‘will not help banks to halt march of the zombies’

    30 November 2012

    The Times quotes Policy Exchange's James Barty, Senior Consultant for Financial Policy, arguing that the Bank of England cannot expect banks to increase lending while at the same time raising their capital ratios. James stresses that this has failed in the past.

  • Bank chief Sir Mervyn King 'failed' to spot crisis warning signs

    12 September 2012

    James Barty, Policy Exchange's Senior Consultant for Financial Policy, is quoted in The Daily Mail arguing that the Bank of England is in need of urgent structural and cultural reform due to its failings prior to, and since, the financial crisis.

  • Land Securities brings in pay clawback

    08 July 2012

    Senior Consultant to Policy Exchange on Financial Policy James Barty is quoted in The Daily Telegraph arguing that Land Securities should go further with its newly created bonus clawback scheme.

  • Failing Directors should be Forced to Repay Bonuses, Says Think Tank

    04 July 2012

    Recommendations from Policy Exchange's latest report Executive Compensation are covered by the International Business Times. They cite calls from the report for forcing directors to pay back bonuses if they underperform.

  • Governor Mervyn King's warning on global economy

    15 June 2012

    James Barty, Senior Consultant to Policy Exchange on Financial Policy, is quoted by The Scotsman calling for George Osborne to hold off on reforming the banking system until the economy is recovering properly.

  • Mansion House 2012 speeches: reaction

    14 June 2012

    The Telegraph quote James Barty, Senior Consultant to Policy Exchange on Financial Policy, from his recent blog post calling for George Osborne to put banking reform on the back burner until the economy is recovering properly.

  • Bonus clawbacks should be in all director contracts, says think tank Policy Exchange

    05 June 2012

    Policy Exchange's upcoming report on executive remuneration is trailed in The Daily Telegraph. The article focuses on the proposal that “clawbacks” be introduced as standard on all bonuses and long-term incentive schemes. James Barty, Senior Consultant to Policy Exchange on Financial Policy, is quoted giving examples of cases in which these proposals would apply.

  • Insurer Aviva's CEO resigns after shareholder revolt

    08 May 2012

    James Barty, Senior Consultant to Policy Exchange on Financial Policy, is quoted by AFP commenting on the recent shareholder revolts at Aviva, AstraZenica and Barclays. James says that the government's push to give shareholders more say over executive pay and remuneration has triggered a greater level of shareholder activism.

  • A little mortgage-rise medicine is good for us

    07 March 2012

    The Times quotes Senior Consultant to Policy Exchange on Financial Policy James Barty's suggestion that the Bank of England should scrap Quantitative Easing and instead copy the ECB in lending money to national banks.

  • James Barty on the Today programme

    23 February 2012

    James Barty, Senior Consultant to Policy Exchange on Financial Policy, debates what to do with the bank shares the state owns with Michael Fallon, proposing potentially distributing the shares to the public to sell as they wish with a clawback option and a share of any profit for the Treasury.

  • Next Bank of England Governor: The Race is On

    23 February 2012

    James Barty, Senior Consultant to Policy Exchange on Financial Policy, is quoted on the CNBC news arguing that the next Bank of England Governor should have financial markets experience.

  • Bankers, Watch Your Bonus, It May Be Revoked

    21 February 2012

    CNBC News quotes Policy Exchange's Senior Advisor on Financial Policy James Barty stating bankers should be rewarded for success not failure. He also advocates bonuses are paid into third-party accounts and are not paid until a certain date to ensure that traders and investment bankers look towards long-term performance.

  • British Bonus Season Set to Disappoint Traders

    17 January 2012

    James Barty, Senior Advisor on Financial Policy at Policy Exchange, is quoted by CNBC making the case for reforming executive pay so that a substantial proportion is kept in escrow and paid out according to the company's long-term performance.

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Related Blogs

  • Funding for Lending isn’t working: Why the Bank is missing the point

    24 April 2013

    James Barty, Policy Exchange's Senior Consultant for Financial Policy, sets out why the Funding for Lending Scheme is not working, making the argument from his report Capital Requirements that high capital requirements are preventing banks from lending to small businesses. James says the Bank of England must promote credit growth and revert to buying corporate debt directly from the banks.

  • Bank of England weakens economy by demanding further bank capital

    28 March 2013

    James Barty, Policy Exchange's Senior Consultant for Financial Policy, writes in response to the Bank of England's recent announcement that banks must raise £25 billion extra in capital requirements, arguing that this measure will stop banks lending and prevent economic recovery. James cites findings from recent Policy Exchange report Capital Requirements which found bank lending to private companies has fallen since 2008 by £57 billion due to capital requirements being set too high.

  • Osborne was right to oppose the EU banker bonus cap

    06 March 2013

    James Barty, Policy Exchange's Senior Consultant for Financial Policy, sets out why George Osborne was right to fight the EU bankers' bonus cap. James argues that a cap on bonuses would make banks less safe because it introduces more rigidity into the system and could trigger banks to relocate to other financial centers free of restrictive legislation.

  • The five questions Mark Carney must deliver answers to

    07 February 2013

    James Barty, Policy Exchange's Head of Financial Policy, sets out the five questions he would pose to incoming Bank of England Governor Mark Carney. The key answers Barty seeks are how Carney would organise the Bank, how he would stimulate the economy, his views on capital ratios, his plans to move from targeting inflation to growth and how he would judge success five years from now.

  • Should the Bank of England’s objective be changed?

    04 January 2013

    James Barty, Policy Exchange's Senior Consultant for Financial Policy and author of recent Policy Exchange report Reform on the Bank of England, highlights the reasons why the Bank of England should change its objectives. James argues that rather than continuing to measure growth by inflation, the Bank should consider following the US Federal Reserve model which would mean targeting maximum employment, stable prices, as well as moderating long-term interest rates.

  • A new Bank of England for a new Governor

    01 December 2012

    James Barty, Policy Exchange's Senior Consultant for Financial Policy and author of recent Policy Exchange report Reform of the Bank of England, sets out recommendations for reform from the report including ceding power to the Deputy Governors, greater external influence and hiring more people with financial experience.

  • Loosening purse strings

    22 October 2012

    James Barty, Policy Exchange's Senior Consultant on Financial Policy, argues that the drive to increase banks' capital ratios is harming recovery and that the process should be slowed, if not reversed in some cases.

  • The case for Reform of the Bank of England

    11 September 2012

    James Barty, Policy Exchange's Senior Consultant for Financial Policy, argues that the Bank of England is in desperate need of structural and cultural reform. James suggests that the Bank's failures prior to and following the financial crisis indicate that the current institution must be reformed before it takes on any new responsibilities. 

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