We use cookies to provide you with a better experience. If you continue to use this site, we'll assume you're happy with this. Alternatively, click here to find out how to manage these cookies

hide cookie message
RSS FeedPeople Management

Bob Diamond to face MPs on Libor scandal

The inquiry scheduled for 2pm could prove explosive as Diamond defends his role and that of Barclays in the scandal

Article comments

Bob Diamond is to face a parliamentary inquiry on Wednesday where he is expected to attack Bank of England governors for their part in the Libor interest rate rigging scandal.

A day after resigning as boss of Barclays, Diamond is set to answer questions in a parliamentary inquiry on his role and that of Barclays’s in fixing Libor, the London Interbank Offered Rate, a global benchmark underpinning financial transactions worth an estimated $360 trillion.

Diamond's testimony to a parliamentary inquiry could prove politically explosive. On Tuesday Barclays published a 2008 internal memo from the US investment banker which fellow managers understood to mean that the Bank and government might approve if they manipulated the Libor rate at the height of the banking crisis.

He is scheduled to appear before the cross-party Treasury Select Committee at 2 p.m..

Though his compatriots across the Atlantic will be celebrating a holiday marking their independence from Britain, Diamond said he "looked forward to fulfilling" his appointment with parliament in London, despite having already resigned.

Barclays' defence tactic of claiming official sanction for manipulating a rate at a time of market crisis drew a sceptical response on Tuesday from the man who was chancellor at the time. Former Labour chancellor Alistair Darling said he could not imagine the central bank asking Barclays to take such action and said his department would never "suggest wrongdoing like this".

Britain's third-biggest bank was fined £290 million by US and UK regulators for its role in the alleged manipulation of Libor.

Barclays said in its submission that it was "ironic" that there had been such an intense focus on it alone, because the company had been the first to settle with authorities over Libor in the midst of a global investigation of the banking industry.

Marcus Agius, chairman of Barclays and chairman of the British Bankers Association which sets Libor, quit on Monday.

photo credit: Reuters



Bob Diamond to face MPs on Libor scandal
People Management

Finance skills evolve as the recovery takes hold

Finance skills evolve as the recovery takes hold

Finance teams need to learn soft skills as corporate priorities evolvemore ..

ITV group FD to join DS Smith board

Ian Griffiths to take up non-executive director role at packaging companymore ..

Unemployment falls to five-year low

Headline rate of unemployment at 6.9% as wages rise above inflation ratemore ..

Microsaic Systems appoints new FD

Andrew Darby to succeed Malcolm Batemanmore ..

Do you have what it takes to become a non-executive?

The benefits of board service for CFOsmore ..

How level is the playing field for women in business?

Vince Cable moots women-only shortlists just ahead of international women’s daymore ..

Send to a friend

Email this article to a friend or colleague:

PLEASE NOTE: Your name is used only to let the recipient know who sent the story, and in case of transmission error. Both your name and the recipient's name and address will not be used for any other purpose.

In Depth
How M&A teams can create value by challenging the CEO

How M&A teams can create value by challenging the CEO

A typical “hold” period of nine to 18 months can generate increased sale value more ..

In Depth
What every company needs to do about big data?

What every company needs to do about big data?

In the first of a three part series, Pat Brans explores just how big 'big data' will get? more ..


* *