Barclays in the spotlight: special focus
It was Diamond’s hubris that ultimately triggered his untimely demise as Barclays' CEO, tarnishing a uniquely successful 16-year career as the architect of a global investment banking franchise. But his successor inherits a banking diamond that needs an awful lot of polishing.
Bob Diamond’s appearance before the Treasury Select Committee was culture clash TV. But the MPs failed to score on the most important issue: the swash-buckling, high octane, risk-taking culture that Diamond created at Barclays Capital led to, indirectly, the Libor scandal and more.
Why did Barclays choose to settle first with respect to the Libor manipulation saga, given this week's damage to its franchise, and the departure of Bob Diamond? And just how large was its interest-rate derivatives exposures?
The shock resignation of Bob Diamond as group chief executive of Barclays has brought a swift and abrupt end to an 16-year rollercoaster career at the bank, in which he played a commanding role in orchestrating its remarkable evolution.
The Libor scandal is unlikely to dent the group's earnings and could add impetus to chief executive Bob Diamond's belated cost-cutting drive.
Bob Diamond is banking that the Libor manipulation scandal will trigger industry-wide litigation to even out the pain.