Bob Diamond resigns as Barclays CEO amid interest rate fixing controversy

By on Jul 3, 2012 in Banking, Business, Europe, United States Comments

Updated: February 12, 203 6:00 p.m.

Read Barclays cuts 3,700 jobs, as part of British bank’s structural review and to reduce cost

Barclays CEO Bob Diamond resigned from his post on Tuesday, July 3, 2012; amid the controversy in the alleged interest rate fixing that brought the company to pay $453 million in fines by U.S. and British agencies.



Bob Diamond, during his time as Barclays CEO,
in a TV interview in Hong Kong, China (June 13, 2012)

Image Credit: Jerome Favre/Bloomberg

As announced by Barclays on its official website that day, Bob Diamond resigned as the company’s CEO and Director of Barclays effective immediately and search for a new Chief Executive will commence immediately and will consider both internal and external candidates.

According to Barclays, Marcus Agius will become full-time Chairman and will chair the Barclays Executive Committee pending the appointment of a new Chief Executive and he will be supported in discharging these responsibilities by Sir Michael Rake, Deputy Chairman.

“No decision over that period was as hard as the one that I make now to stand down as Chief Executive. The external pressure has reached a level that risks damaging the franchise – I cannot let that happen.” Bob Diamond was quoted at Barclays.com.

“I am deeply disappointed that the impression created by the events of last week about what Barclays and its people stand for could not be further from the truth. I know that each and every one of the people at Barclays works hard every day to serve our customers and clients.” Diamond added.

Bob Diamond has made an enormous contribution to Barclays over the last 16 years of distinguished service to the Group, building Barclays Investment Bank into one of the leading global investment banks in the world.” Marcus Agius said in the report, adding that he is looking forward to work closely with the company’s executives.

Apparently, Diamond‘s resignation comes a day after Barclays chairman Marcus Agius announced his own resignation and accepted ultimate responsibility for the alleged interest fixing between 2005 and 2009; with Britain’s Serious Fraud Office (SFO) saying that it hopes to decide whether to pursue criminal charges within a month or not.

Meanwhile, British Chancellor George Osborne reportedly welcomed Diamond‘s resignation saying that it was the right decision for the company and for the country. Opposition Labor Party leader Ed Miliband earlier criticized the former Barclays CEO and urged him to step down and to accept the responsibility as well.



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