Barclays chief facing calls to quit over scandal
Pressure grows on Bob Diamond as share price dives
BARCLAYS boss Bob Diamond was facing mounting calls to quit today as he said all those responsible for the rate-rigging scandal should pay the price.
With Britain’s biggest banks facing the threat of a criminal investigation over the activity that could cost the industry billions of pounds, the under-fire chief executive has agreed to a grilling by MPs.
Prime Minister David Cameron said it was very important that accountability “goes all the way to the top” and Mr Diamond had “some serious questions to answer”.
In a further blow, the Financial Times called directly on the senior banker to quit.
The sector was also braced for its public image to take a further battering as the Financial Services Authority (FSA) revealed it found evidence banks are embroiled in another scandal.
A review into the way lenders pushed interest rate swap arrangements (Irsas), which have landed small businesses with spiralling bills, uncovered mis-selling.
Barclays, HSBC, Lloyds and Royal Bank of Scotland have agreed to compensate certain customers.
Barclays shares slid 15% yesterday – wiping £3 billion from its market value – as investors ditched the stock amid fears £290 million fines could be dwarfed by lawsuits and damages.
Chancellor George Osborne told MPs the scandal was “a shocking indictment of the culture of banks like Barclays in the run-up to the financial crisis”.
Mr Diamond, who was in charge at the time the breaches occurred, has apologised and waived his bonuses for this year.