Barclays boss Bob Diamond resigns
Barclays chief executive Bob Diamond dramatically resigned with immediate effect today in the wake of the bank rate-rigging scandal.
Barclays chief executive Bob Diamond dramatically resigned with immediate effect today in the wake of the bank rate-rigging scandal.
The American, who has faced mounting calls to step down, said the decision was the hardest he had had to make in 16 years at Barclays.
His resignation was welcomed by Chancellor George Osborne, who called the move ‘the right decision for Barclays’ and the ‘right decision for the country’.
But while Mr Diamond has resigned, chairman Marcus Agius has made a spectacular return.
Having resigned yesterday, Mr Agius is now reinstated as ful ltime chairman of the bank, and must now find a replacement for Mr Diamond.
Mr Diamond said: “I am deeply disappointed the impression created about what Barclays and its people stand for could not be further from the truth.”
Mr Diamond’s resignation comes after the bank was fined a record £290 million by UK and US regulators for manipulating the rate at which banks lend to each other, sparking a parliamentary probe.
The 60-year-old said today: “My motivation has always been to do what I believed to be in the best interests of Barclays.
“No decision was as hard as the one that I make now to stand down as chief executive.”
He went on: “I know that each and every one of the people at Barclays works hard every day to serve our customers and clients.”
Mr Diamond confirmed he would still appear before the Treasury Select Committee tomorrow to answer questions over the rate-fixing allegations.
Labour leader Ed Mili-band said: “This was necessary. It was clear he was not the man to lead the change Barclays needed.”
The move was announced at 8am and an hour later, the bank’s share price was up one per cent to 170p.
By David Burrows
Comments for: "Barclays boss Bob Diamond resigns"
Rob, Telford
Oh bless - Mr Diamond is "deeply disappointed".
How does he think most of us feel - the victims of his and his cronies' obscene manipulation of the banking system?
John Howard
"The 60-year-old said today: My motivation has always been to do what I believed to be in the best interests of Barclays". Yes that's exactly what capitalism is all about - as long is Barclay's and it's directors are ok the rest of us can get fleeced.
Huw Peach
Bob Diamond's departure is welcome as it shows that at least one person is willing to shoulder responsibility for the LIBOR fixing scandal.
However, this one resignation is clearly not going to clean up the culture and reform our banking system overnight.
How many of the regulators, who missed this when it happened in 2005 and 2006, have resigned?
And how many resignations have there been from politicians and economists, who have always lobbied hard for light-touch regulation of the banking world?
In 2008, Bob Diamond reportedly spoke to the Bank of England's Deputy Governor, Paul Tucker.
According to today's Independent newspaper, 'Barclays traders are known to have escalated their attempts to manipulate Libor after the conversation took place.....'
'Both Barclays and the Bank of England have been quick to deny any instruction to falsify Libor was given to Mr Diamond as a result of the discussion.'
One resignation, significant as it is, is therefore not going to change things root and branch, when questions like the above are still swirling around.
So what should people do, who are impatient with regulators' and mainstream politicians' ability to clean the banking world up?
One good way to get the rotten banking culture to change is for ordinary people to move our money.
According to the website, 'Move Your Money UK', which looks at the pros and cons of moving bank accounts, there are 6 ethical banks, 53 building societies, 66 community development finance institutions and 580 credit unions.
It would be great to see people moving their money en masse from the big banks into institutions, which have been doing the right thing from the outset.
And it would great to see politicians responding to public outrage with proper regulation of the banking world, which makes it impossible for scandals like this to happen again in the future.
Rob, Telford
"Bob Diamond’s departure is welcome as it shows that at least one person is willing to shoulder responsibility for the LIBOR fixing scandal."
Every comment that I've seen from Diamond has been a denial of responsibility.
Huw Peach
I agree that he was probably forced out, but do you think the buck stops with him alone?
Rob, Telford
Certainly not - I'm sure responsibility rests across a wide area, well beyond Barclays itself.
Fior the same reason I doubt if we'll ever see a full and independent inquiry into the whole affair - too many vested interests are at stake.
Huw Peach
Don't you think the Move Your Money UK campaign could build up unstoppable pressure for a full and independent inquiry?
Vested interests watching money flow out of their institutions would realise that the public simply won't stand for the abuses and manipulation any longer.
It will be interesting to see how much press coverage this morning's Move Your Money flash mob outside Barclays gets.
Huw Peach
Hi again, Rob.
The petition below is calling for a a full and independent inquiry into the whole affair:
http://epetitions.direct.gov.uk/petitions/35421
Rob, Telford
Thanks for that Huw - I've just added my signature.
Huw Peach
Great.
About 100 more have signed in the last 4 hours so word seems to be getting out about the petition slowly but surely.
Please help spread it further.
Huw Peach
A YouGov poll from July 3rd 2012 showed that
55% of UK people think there should be a JUDGE-LED Inquiry into the LIBOR fixing scandal
30% of UK people think there should be a PARLIAMENTARY Inquiry into the LIBOR fixing scandal
6% think there is no need for an inquiry
8% of people don't know.
(SEE: http://d25d2506sfb94s.cloudfront.net/cumulus_uploads/document/35hx5s45j8/YG-Archives-Pol-Sun-Barclays-040712.pdf )
Yesterday evening the House of Commons debated a motion proposed by Labour, DUP, SNP, Plaid Cymru, SDLP, Green Party and one Independent for a JUDGE-LED inquiry.
The government defeated this motion by 320 votes to 239 - a majority of 81.
Later a government motion proposing a PARLIAMENTARY inquiry into the same issues was voted through by 330 to 226 - a majority of 104.
So public opinion was ignored.
Again.
Mike
Well you know the saying "Buy a gun and rob a bank" or "Buy a bank and rob the world"
Katherine de Gama
On a lighter note there is a sign by the Pengwern boathouse which says, 'danger unstable banks'!