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BARCLAYS CHIEF EXECUTIVE Bob Diamond has resigned with immediate effect over a rate rigging scandal at the British banking giant, the company said this morning.
“Barclays today announces the resignation of Bob Diamond as chief executive and a director of Barclays with immediate effect,” the bank said in a statement to the London Stock Exchange.
US national Diamond added in the statement: “The external pressure placed on Barclays has reached a level that risks damaging the franchise — I cannot let that happen.”
Diamond’s resignation follows that of the bank’s chairman Marcus Agius on Monday and as the bank faced possible criminal prosecution in a scandal that has sullied London’s image as a financial centre.
Britain’s Serious Fraud Office on Monday announced that it was considering whether it was “appropriate and possible to bring criminal prosecutions” over the issue, adding that it hoped to reach a conclusion within a month.
British Prime Minister David Cameron also announced a parliamentary inquiry into the revelations that Barclays traders had lied about the interest rates other banks were charging it for loans.
The scandal, which might implicate other international banks, concerns manipulation of the Libor and Euribor rates which play a key role in global markets, affecting what banks, businesses and individuals pay to borrow money.
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Excellent headline.
Copyright Michael Deacon: https://twitter.com/MichaelPDeacon/status/218271333954494466
Why is Diamond and his cronies not in prison?
Should you even have to ask? Hes a banker.
White collar crime is nonpunishable why?Lobbying from corrupt politician’s that bend and change the rules and a nice lump some for there campaign trail and a comfortable pension.
It’s very probable that the main culprits will do time for this IMHO.
He is a banker. Even though this is a crime on a truly monumental scale.
What it also shows is that fraud is an endemic part of the deregulated financial market.
It would not surprise me if some Black Swan event like this, was the tipping point that shatters the market and the banking system.
Scandal solution – one muppet steps down, another steps in. Oh and maybe some talk of ‘criminal proceedings’.
Don’t shed any tears. He’ll have his big fat pension
I doubt he will need a pension. Making $16 million a year, he has a healthy retirement fund.
International banks and large multinationals are now much more powerful than most governments. It’s a recent phenomenon and wrong but they are allowed behave above the law at the moment. Politicians are beholden to their financial support to get elected and reelected. Just look at Enda kissing O Brien s ass. Until citizens demand action against the Sean Fitz/ blankstein/ Diamond/ Paulson s of this world nothing will change.
$350Tn
“Banking was conceived in iniquity and was born in sin. The Bankers own the earth. Take it away from them, but leave them the power to create deposits, and with the flick of the pen they will create enough deposits to buy it back again. However, take it away from them, and all the great fortunes like mine will disappear and they ought to disappear, for this would be a happier and better world to live in. But, if you wish to remain the slaves of Bankers and pay the cost of your own slavery, let them continue to create deposits.”nn— Sir Josiah Stamp
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