Printer Friendly

Barclays CEO Diamond quits over rate rigging.

BARCLAYS Chief Executive Bob Diamond quit on Tuesday under fire from politicians and regulators, the highest-profile casualty of an interest rate-rigging scandal spanning more than a dozen big banks across the world. "The external pressure placed on Barclays has reached a level that risks damaging the franchise - I cannot let that happen," said Diamond, 61.

The terms of his severance were not announced. His resignation was a sudden reversal, hours after he said it was down to him to clear up the mess at Britain's third-largest bank, fined nearly half a billion dollars for its part in manipulating a global benchmark interest rate.

Prime Minister David Cameron had announced a parliamentary inquiry after calling for Diamond to take responsibility for the scandal, and the Financial Services Authority regulator had also brought pressure to bear on the board.

FSA Chairman Adair Turner said on Tuesday he had had private conversations with Barclays since Friday morning about the need for "cultural change" at the bank. "We communicated to the board those were the sort of issues they needed to think about, but it was for them to decide whether they could achieve that degree of change ... under the current leadership," he said.

Diamond sent a long letter to staff on Monday showing his resolve to continue. But he and the board decided he should quit later that day after Cameron and finance minister George Osborne announced the parliamentary inquiry. Politicians and newspapers have zeroed in on the scandal - which revealed macho e-mails of bankers congratulating each other with offers of champagne for helping to fiddle figures - as an example of a rampant culture of wrongdoing in an industry that stayed afloat with huge taxpayer bailouts.

Diamond's resignation was "a first step towards that change of culture, that new age of responsibility we need to see", Osborne told BBC radio. "The chairman of Barclays phoned me last night to let me know that this was the decision of the board and of Mr Diamond, and I think Mr Diamond made the right decision," Osborne said.

Copyright Qatar Tribune. All Rights Reserved.

Provided by Syndigate.info an Albawaba.com company
COPYRIGHT 2012 Al Bawaba (Middle East) Ltd.
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2012 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:Qatar Tribune (Doha, Qatar)
Date:Jul 4, 2012
Words:356
Previous Article:Global stocks, euro gain on hopes of policy easing.
Next Article:Boeing hikes 20-year market forecast to $4.5 trillion.

Terms of use | Privacy policy | Copyright © 2019 Farlex, Inc. | Feedback | For webmasters