|
Diamond said he still intended to face the House of Commons Treasury Committee on Wednesday to give the bank's explanation for the false interest rate reports. Barclays is one of a number of banks which regularly submit estimates of what it will cost them to borrow from other banks. These estimates feed into a calculation of the London interbank offered rate (LIBOR) which is used to determine payments from a range of financial contracts. The London rate, and the related European interbank offered rate, are the benchmarks for over $500 trillion in global contracts, including loans and mortgages. Barclays admitted that it had submitted lower than actual figures on its interbank borrowing during the credit crisis in 2007 and 2008. Several other global banks are being investigated in other countries for similar actions. Last week, Diamond announced that he and three other senior executives were waiving any bonuses for 2012 because of the rate scandal. The financial terms of his departure were not immediately disclosed. His departure came as a surprise. On Monday, Diamond sounded like a man determined to keep his job. In a memo to staff, he said he was disappointed by the misbehavior which led to the massive fines, but said: "It is my responsibility to make sure that it cannot happen again." Diamond built up Barclays Capital into a profit-spinning powerhouse, and scored an important coup during the financial crisis by buying the remains of Lehman Brothers U.S. operations in a $1.35 billion deal. Barclays survived the credit crisis without resorting to the kind of taxpayer bailout which saved Lloyds Banking Group and Royal Bank of Scotland, relying instead on an injection of capital from Qatar Holding, the government-backed investment fund. In January last year, Diamond memorably told a House of Commons committee: "There was a period of remorse and apology for banks. I think that period is over."
[Associated
Press;
Copyright 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
News | Sports | Business | Rural Review | Teaching & Learning | Home and Family | Tourism | Obituaries
Community |
Perspectives
|
Law & Courts |
Leisure Time
|
Spiritual Life |
Health & Fitness |
Teen Scene
Calendar
|
Letters to the Editor