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Search is on for Diamond's successor

Tuesday, July 03, 2012 - 02:09

July 3 - After Barclays CEO Bob Diamond quit, the bank's outgoing Chairman Marcus Agius is going to lead the search for his successor. Banking analysts wonder if all internal candiates will be tainted by the scandal and who would want the job. Joanna Partridge reports

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He once said it was time for bankers to stop saying sorry. But Barclays CEO Bob Diamond made his own apology before quitting with immediate effect on Tuesday. The 60-year-old told staff he regretted the interest rate rigging scandal, which happened under his watch at the investment banking arm. He also said the bank had let down customers and shareholders and the political pressure had become too much. Richard Hunter from Hargreaves Lansdown says his departure will go some way to protecting Barclays' reputation. SOUNDBITE: Richard Hargreaves, Head of UK Equities, Hargreaves Lansdown, saying (English): "What today's news also provides is something of a line under this particular sorry episode, whilst that's from a cultural point of view as opposed to from a business point of view because the lawsuits, the amount of lawsuits, where they're going to be coming from, how much they're going to amount to remains to be seen, but I think there's probably been something of a relief rally in the shares based on that alone." PTC: Here at Barclays head office in London the search for Diamond's successor is already underway. The bank's outgoing Chairman Marcus Agius will lead the hunt - and they'll be looking at candidates inside and outside the bank. One person who won't be in the running is Chief Operating Officer Jerry del Missier - he also resigned on Tuesday. Banking analyst Ralph Silva doubts the next CEO will be an internal candidate. SOUNDBITE: Ralph Silva, Founder of Silva Research Net, saying (English): "It is important for Barclays to get the appropriate replacement for Bob Diamond, and the truth is that it's going to be almost impossible to do that, simply because the people inside of Barclays right now are arguably tainted and I would argue that they don't even want the position because there's going to be a tremendous amount of pressure on it." Bob Diamond will still speak to British MPs on Wednesday - he's likely to face a grilling. It may not have been the biggest protest but public anger about banking culture in the City of London continues to grow. And some are wondering if he will indeed reveal potentially embarrassing details about Barclays' dealings with the Bank of England. Joanna Partridge, Reuters

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Search is on for Diamond's successor

Tuesday, July 03, 2012 - 02:09