Diamond set for showdown with MPs

Diamond set for showdown with MPs

Bob Diamond has quit Barclays after the bank was fined 290 million pounds by UK and US regulators

Barclays chief operating officer Jerry del Missier has resigned

Bob Diamond has quit Barclays after the bank was fined 290 million pounds by UK and US regulators

Barclays chief operating officer Jerry del Missier has resigned

First published in National News © by

Bob Diamond is preparing for a showdown with MPs following his shock resignation as Barclays chief executive in the wake of the rate-rigging scandal.

Mr Diamond and his right-hand man Jerry del Missier both quit with immediate effect as the storm surrounding the interbank lending rate closed in on the Bank of England.

Ahead of his appearance before the Treasury Select Committee on Wednesday, Mr Diamond revealed details of a phonecall he had with BoE deputy governor Paul Tucker that ultimately led to some staff attempting to fix the so-called Libor.

Barclays said Mr Diamond's account of the conversation was wrongly interpreted by Mr del Missier, then a senior manager at investment arm Barclays Capital, as an instruction to lower the bank's Libor submissions.

Chairman Marcus Agius, who resigned over the affair on Monday, will remain with the bank to lead the search for a new chief executive before stepping down at a later date. Mr Agius admitted to knowing about the Libor-fixing claims for two years as the Financial Service Authority and other agencies investigated the bank's actions.

Chancellor George Osborne, who on Monday announced a parliamentary probe into banking standards, said Mr Diamond made the "right decision" for the bank and for the country. The Treasury launched a consultation on the possibility of introducing a new criminal offence covering serious misconduct in bank management.

While Labour leader Ed Miliband also backed the departure, he continued to call for a full judicial inquiry into banking culture and accused the Prime Minister of failing to recognise "the gravity and scale of this crisis".

After previously showing no signs of exiting, Mr Diamond unexpectedly put an end to his 16-year career at Barclays, admitting the "pressure" threatened the bank's future. He will reportedly be asked to give up nearly £20 million in unvested shares awarded to him in previous years, although Barclays would not comment.

The speculation comes after proxy-voting and corporate governance service firm Manifest estimated Mr Diamond had earned at least £120 million since joining Barclays' board in 2005. Mr Diamond, 60, who took home nearly £18 million in pay rewards in 2011, is expected to "speak more freely" when he appears before MPs now he is no longer at the helm.

Later, the House of Lords has rejected Labour's call for a judge-led inquiry into the bank rate-rigging scandal. Peers voted by 251 to 197, Government majority 54, against the plan.

Comments

Post a comment

Remember you are personally responsible for what you post on this site and must abide by our site terms. Do not post anything that is false, abusive or malicious. If you wish to complain, please use the ‘report this post’ link.

Send us your news, pictures and videos

Most read stories

Local Info

Enter your postcode, town or place name

About cookies

We want you to enjoy your visit to our website. That's why we use cookies to enhance your experience. By staying on our website you agree to our use of cookies. Find out more about the cookies we use.

I agree