Tuesday, July 3, 2012

Barclays CEO Bob Diamond Resigns

Amid investigations into the interest rate manipulation scandal, Barclay’s (NYSE:BCS) controversial CEO Mr. Robert Diamond has finally resigned. The resignation comes into effect immediately. It follows after the bank’s chairman, Mr. Marcus Agius quit yesterday.

One of the Europe’s biggest banks is without any Chairman and CEO. Until a new person is appointed, Mr. Agius will stay with the bank.

Mr. Diamond was already under immense pressure from politicians and investors over allegations that his company had manipulated key interest rates. The bank has already reached an agreement to pay $453mn to Financial Services Authority and Commodity Futures Trading Commission while it is itself carrying out an independent internal audit of its business practices.
Tomorrow is a big day for Mr. Diamond as he will face the UK’s Treasury Select Committee over the ongoing scandal.

Commenting on the events, the ex-CEO has said, "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,"

During his 17 month tenure, Mr.Bob Diamond had tried to reshape Barclay’s as a leading investment bank, a plan that received immense criticism from the bank’s investors and could not achieve its desired results, partly due to the growing economic crisis.  

Officially, the bank has not announced as to when the new CEO will be appointed. Analysts are predicting Antony Jenkins, the head of the bank’s retail arm, to take over as the new CEO.

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Relevant Links
Barclays CEO Robert Diamond Resigns [The Wall Street Journal]