Barclays Boss Diamond Says He Won't Resign
The boss of Barclays says he won't resign despite the bank receiving a £290m fine for rigging the key lending rate between banks.
Bob Diamond announced his decision whilst speaking at a meeting at US bank Morgan Stanley.
The bank chief also said he "welcomes" the opportunity to give evidence to Parliament in the coming weeks.
Last night, he accepted a summons from the Commons Treasury Select Committee to appear before the influential cross-party panel to answer for the bank's behaviour.
In a letter to the committee's chairman, Tory MP Andrew Tyrie, he accepted that foregoing bonuses, apologising, paying the fines and disciplining individual offenders would not be sufficient to restore the bank's reputation.
He said he would "welcome the opportunity to provide answers" when he gives evidence in the coming weeks.
Mr Diamond said "a small number" of individual traders were responsible for one part of the scandal - entirely to benefit their own pockets - and that insufficient controls had now been strengthened.
But he also accepted that a corporate decision to cheat the system was "wrong" even if it was aimed at protecting the bank from "negative speculation during periods of acute market stress".
"Given the nature of the behaviours uncovered through these investigations, questions of accountability have rightly been raised," he wrote.
"We are now completing a review of employee conduct for all of those involved.
"That process is rigorous and all appropriate options will be pursued for those who have a case to answer, ranging from the clawback or withholding of remuneration to being asked to leave the bank."
The decision to abandon bonuses was also an important act, he said.
"But we need to do more than that. We need to work every day to rebuild the trust that has been damaged by these actions and others that have come before them.
"This kind of conduct has no place in the culture of Barclays."
Prime Minister David Cameron said it was very important that accountability for what went on "goes all the way to the top of that organisation" and that Mr Diamond had "some serious questions to answer".
In a further blow, the Financial Times called directly on the senior banker, who it said was behind the bank's "hard-driving culture", to step down.
"If he had an ounce of shame he would immediately step down," the newspaper said in a front page editorial.
The sector was also braced for its public image to take a further battering with the Financial Services Authority (FSA) due to reveal it has found evidence that banks are embroiled in another scandal.
A review into the way lenders pushed so-called interest rate swap arrangements (Irsas), which have landed small businesses with spiralling bills, is expected to have uncovered mis-selling.
Barclays shares slid 15% yesterday - wiping £3bn from its market value - as investors ditched the stock amid fears £290m fines could be dwarfed by lawsuits and damages.
At the start of the trading day, Barclays shares bounced back a little, and were up just over 4%, but have sinced turned around and dropped 0.4%.
The bank was hit with the penalties by UK and US regulators for fixing the interbank lending figures that affect millions of homeowners and small firms.
The controversy, which covers a period between 2005 and 2009, could spread to other lenders, as RBS, HSBC, UBS and Citigroup are also being investigated.
Serious Fraud Office investigators are in talks with the Financial Services Authority (FSA) over the scandal.
Chancellor George Osborne told MPs the scandal was "a shocking indictment of the culture of banks like Barclays in the run-up to the financial crisis".
Mr Diamond, who was in charge of Barclays Capital at the time the breaches occurred, along with three other key executives, waived their bonuses for this year.
Meanwhile, RBS has played down reports in the Times which claim that it faces a £150m fine for manipulating Libor.
what do you think?
Obtaining money by deceipt!!! Is this not fraud?????
in eyes of mps and bankers no,different entity if you or i did it ,parkhurst HMP we would go !
Its in the intrest of the tory party to keep letting these bankers keep getting away with murder because there the people who bank roll them with there party donations so expect the punishments to be no more than a slap on the wrist no matter what cameron says and remember I said told you so and you heard it her first you watch mark my words
These agents of greed have ruined the economy, ruined our lives, ruined the european dream. They are bringing us to a dangerous place not unlike the place we where in the 1930s and we all no how that ended. How long are we to suffer the will and whims of these power hungry grasping so call leaders of the "Free world" Arthur C Clarke once said If a man puts himself forward for office then that man must be disqualified for he has shown an unhealthy lust for power. The bankers the politicians the captains of industry they all eat at the same table. How long do you think it will be before we discover more than one politician has had his nose in the latest trough of corruption?
Agree with all you say Terry but what I also find worrying is the present administration seems entirely composed of people who are so plainly and completely out of their depth. All cabinets in my memory contained the odd one or two muppets but this shambles at government,banking and corporate levels is , as you allude to , definitely taking us all to a very very dark place I fear.
Do you remember the good old days when even the high and mighty, when caught out, did the honorable thing & threw themseves on their swords? Clinging on to their jobs only highlights that these people's lust for greed overcomes their pride.
surely thats fraud?? wouldnt you or I be prosecuted in those circumstances !! this country is pathetic
The main qualification for senior level jobs in banking appears to be extreme greed coupled with Teflon skin.
What good will a few MP's do? Nothing cause they don't have the power. The people with the power are the banks. That was proved when the blew the economy and Europe. As Terry says whose next, because you can bet £1 that it won't go away and there are others, wether its a bank or MP with doggy dealings somewhere. Is this why Barclays did not want bailing out by the Government because they were frightened that their doggy dealing would be found out?
I do not know how LIBOR works, but surely it is impossible for one bank to manipulate the rate without the knowledge and/or assistance of all the others. There must be some very nervous bankers around at the moment.
Exactly Philip. LIBOR = London Interbank Offer Rate. Central banks including the BoE will be implicated when the full truth is revealed.
This is fraud - no question. They should be sent to prison no quiblbes. When are we going to get tough on these greedy people. What chance have us younger generation got with the older generation hell bent on greed to fund their demanding wives and pensions.
And i have to agree with you Gillian. These poor pathetic suited people came to believe in fictional characters like Gecko (Greed is good) unaware that it was make believe. Adams wealth of a nation would now read Adams state of a nation, surely even he realised that the present system was finite and that a new one would eventually have to be found. After all he wrote it when Britain was a super power and was busy plundering the wealth of lesser nations, those same nations who have now come to despise us. The fact is there is only the amount of wealth in the world we imagine there to be. I read recently that today you need 10 million to live like a millionaire of old. so the fact is they are no more wealthier in real terms than they ever was. Its all smoke and mirrors only sometimes the mirror cracks
Bob Diamond should not be given the opportunity to resign, he should be jailed and lose his job at the same time. As far as Mervyn King is concerned, I do not honestly believe that he did not know what was going on, and if he didn't, should not be in the job and position he now holds. Are the public once again going to stand back and do nothing??
This guy should be a politician. He has been caught out and still refuses to take responsibility. Not me guv it was an official. And how is it Pakistani cricketers can go to jail for fixing matches and yet no banker is in jail for financial fraud on a breathtaking scale?
Ronald George Halliday
Maybe the reson behind not resigning is that their is the possibility of more things to uncover and come out yet.
Actually Barclays is a small bit player in this, other banks including several central banks have dirty hands as it dates back to 2008 involving in a large part, one Gordon Brown fineagling lower interest rates to support his re-election. Don't believe me? - Checkout hat4uk.wordpress 28/06 & zerohedge
It may have been a small number of trader`s (the 1%) but the Banks made huge profits overcharging borrowers some whom went Bankrupt and committed suicide I.E. America lost homes and farms through high interest . Gaol and Hang the thieving Banker`s.
I don't know why he doesn't want to resign. We all know he'll get a pat on the head along with a stinking fat bonus if he does! Crooks the lot of them.
But we need these 'Talented' people ? Wasn't it the Talented Gorden Brown who thought that Bob and his mates were just wonderful ? I bet Ed Balls could sort this out ?
Won't resign? Then the board should sack him, and if not, there should be a shareholders' revolt! The insouciance of the man is on a par of that of Tony Blair. The trouble is that we have a government of people who have no ideas, no policies, no plans, no experience, no ideas. I am embarrassed to be a Tory. I am only in the party to vote on Cameron's successor.
Most shareholder are in favour of him staying - the bank did no borrow billions from the government to stay afloat thanks to this man Where Labour and Tories have failed to control banks for decades, banks have pushed to explore what they can get away with When labour had the opertunity to reign in the banks in 2009 they did ltllte
just proves the arrogance of the Banking sector,everyone else can suffer because we can screw up get away with it,collect large salary and a hefty Bonus because i can,but if things get to rough blame someone further down the line to take the can and all the heat, sounds like MP's to,where as any of us mere working or unfortunate lost our jobs and homes because of the banking crisis can go suffer,wonder how long before the big bang and demos happen,wont be long
Many people applauded Alistair Darling rescuing the banks and to be fair he was right with one small exception. He should have let one of them go to the wall so that bankers would see the consequences of their cowboy dealings Regretably he didn't and now the banks know they are fireproof whatever shenanigins they get up to