Barclays up for ‘shame award’ for speculating on food prices

Barclays Bank has been shortlisted for the 2012 Public Eye ‘shame award’ due to its financial speculation on food prices. Anti-poverty campaign group the World Development Movement, which nominated the bank, says its activity is fuelling hunger and poverty worldwide. 

Barclays is estimated to make up to £340 million a year from speculating in food ‘futures’ markets, making it the biggest UK player in the markets. Research by the World Development Movement shows that a massive influx of speculative money in food markets is driving sharp price spikes, sending the cost of food soaring beyond the reach of the world’s poorest people. Financial speculation on food nearly doubled between 2006 and 2011.

Barclays CEO Bob Diamond responded to the Occupy movement by telling the BBC in November that banks must be “better citizens”. But Barclays has ignored calls from campaigners to put the basic human need for food before the profits it makes from speculation.

Amy Horton, campaigner at the World Development Movement, said today:

Barclays is essentially gambling on food prices, at the expense of millions of people who cannot afford to buy food as a result. Speculating on food is reckless in the extreme and governments must take action to curb it.”

Online voting begins today for the ‘people’s award’, while a panel of judges will choose a winner for the ‘global’ award. The winners will be announced on 27 January in Davos, Switzerland, to coincide with the World Economic Forum. 

Campaigners are calling for tough European regulation to curb excessive speculation on food by Barclays and other investment banks and hedge funds. The US has already moved to regulate food markets, and similar rules are under discussion in the EU. But the UK government is blocking attempts to introduce effective European legislation. The World Development Movement’s online comedy series ‘The Real George Osborne’ aims to put pressure on the UK Chancellor to back regulation.

The Public Eye Awards are run by Greenpeace Switzerland and the Berne Declaration.

For more information please contact Miriam Ross on (+44) (0)20 7820 4913 or (+44) (0)7711 875 345 or email miriam.ross@wdm.org.uk