Pressure from rate scandal forces Barclays CEO Diamond to resign
Source: Agencies |
July 4, 2012, Wednesday
|
Print Edition
Print Edition
BARCLAYS Chief Executive Bob Diamond quit his job yesterday, the latest scalp in a financial markets scandal that has also seen the bank's chairman announce his intention to resign and sown the seeds for another investigation into Britain's banking sector.
Diamond's resignation, which has taken effect immediately, comes a day after Chairman Marcus Agius fell on his sword too. However, Agius will lead the search for a new chief executive and will leave the company only after a new chairman is found.
Barclays' management has come under fire since the bank was fined US$453 million last week by US and British regulators for submitting false reports on interbank borrowing rates between 2005 and 2009. Much of that activity originated from traders in Barclays Capital, the investment banking division which Diamond headed at the time.
"The external pressure placed on Barclays has reached a level that risks damaging the franchise. I cannot let that happen," Diamond said yesterday in a statement accompanying his resignation. "I am deeply disappointed that the impression created by the events announced last week about what Barclays and its people stand for could not be further from the truth."
Britain's Serious Fraud Office said on Monday that it would decide within a month whether to pursue criminal charges in the case. The government, which has come under pressure to initiate a judge-led inquiry into the sector, also announced a parliamentary committee to investigate what went on and report by the end of the year.
"Although Diamond's resignation should take some of the ferocity out of the intense criticism heaped on Barclays there is little doubt that the risk of holding the stock has risen substantially in recent days," said Nic Clarke, an analyst at Charles Stanley. "A cloud is likely to hang over the stock until a suitable successor is chosen."
As well as facing intense media pressure over the past few days, Diamond has seen growing calls for his resignation from the political world.
Diamond's resignation, which has taken effect immediately, comes a day after Chairman Marcus Agius fell on his sword too. However, Agius will lead the search for a new chief executive and will leave the company only after a new chairman is found.
Barclays' management has come under fire since the bank was fined US$453 million last week by US and British regulators for submitting false reports on interbank borrowing rates between 2005 and 2009. Much of that activity originated from traders in Barclays Capital, the investment banking division which Diamond headed at the time.
"The external pressure placed on Barclays has reached a level that risks damaging the franchise. I cannot let that happen," Diamond said yesterday in a statement accompanying his resignation. "I am deeply disappointed that the impression created by the events announced last week about what Barclays and its people stand for could not be further from the truth."
Britain's Serious Fraud Office said on Monday that it would decide within a month whether to pursue criminal charges in the case. The government, which has come under pressure to initiate a judge-led inquiry into the sector, also announced a parliamentary committee to investigate what went on and report by the end of the year.
"Although Diamond's resignation should take some of the ferocity out of the intense criticism heaped on Barclays there is little doubt that the risk of holding the stock has risen substantially in recent days," said Nic Clarke, an analyst at Charles Stanley. "A cloud is likely to hang over the stock until a suitable successor is chosen."
As well as facing intense media pressure over the past few days, Diamond has seen growing calls for his resignation from the political world.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
