Bob Diamond’s resignation with immediate effect as chief executive of Barclays gives plenty of people in Westminster the scalp they were looking for. Labour had called for Diamond to go after the Libor scandal surfaced. The Lib Dems had called for Diamond to resign, with Vince Cable threatening to use as a last resort his powers to disqualify directors. In fact the Lib Dems have been so focused on getting Diamond out that I understand they have been intentionally avoiding the brewing row between Labour and Tories about the parliamentary inquiry, headed by Treasury Select Committee chair Andrew Tyrie.
Diamond’s resignation statement to the stock exchange was not exactly dripping with apology and remorse. This is what he said:
“I joined Barclays 16 years ago because I saw an opportunity to build a world class investment banking business. Since then, I have had the privilege of working with some of the most talented, client-focused and diligent people that I have ever come across. We built world class businesses together and added our own distinctive chapter to the long and proud history of Barclays. My motivation has always been to do what I believed to be in the best interests of Barclays. No decision over that period was as hard as the one that I make now to stand down as Chief Executive. The external pressure placed on Barclays has reached a level that risks damaging the franchise – I cannot let that happen. “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. I know that each and every one of the people at Barclays works hard every day to serve our customers and clients. That is how we support economic growth and the communities in which we live and work. I look forward to fulfilling my obligation to contribute to the Treasury Committee’s enquiries related to the settlements that Barclays announced last week without my leadership in question.”
So MPs will still get their chance to grill Diamond tomorrow. I blogged yesterday morning about some of the questions they might want to ask, although the really big question, which will generate many, many more front pages, is on what sort of terms he is leaving. If he departs with a chunky payout, expect more uncomfortable exchanges in the Commons and angry comment pieces from Vince Cable et al. And as a free man, what will Diamond tell MPs on the committee about his conversations with regulators? The Financial Times reported this morning, long before the resignation broke, that he was planning to ‘reveal potentially embarrassing details’ about discussions with the Financial Services Authority and the Bank of England. Andrew Tyrie is going to be a busy man over the next couple of days.
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