Barclays CEO Diamond quits over rate rigging.
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.
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|Publication:||Qatar Tribune (Doha, Qatar)|
|Date:||Jul 4, 2012|
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