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Barclays' Diamond faces grilling over Libor

Wednesday, July 04, 2012 - 02:28

July 4 - Bob Diamond gives evidence to critical British lawmakers a day after quitting as Barclays' chief executive over an interest rate rigging scandal.(ROUGH CUT ONLY - NO REPORTER NARRATION) Diamond abruptly resigned on Tuesday just hours after Bank of England Governor Mervyn King and Financial Services Authority chairman Adair Turner effectively told Barclays Chairman Marcus Agius that the CEO was not the right man to reform the bank's culture after the scandal, people familiar with the matter said. Diamond's testimony to a parliamentary inquiry could prove politically explosive. On Tuesday, Barclays published a 2008 internal memo from him that a senior manager understood to mean that the Bank of England and government might approve if they gave artificially low estimates of their borrowing costs at the height of the banking crisis to avoid giving the impression that Britain's banks were in difficulty.

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Did you want to -- more of senior regulations written off as agents I would say broadly speaking your wounds. Just -- The focus. Intensity. My leadership. It was better for me to step down there was a perception. You know we're all. That are great for -- and the worry I'd picture job that if you. Members of the government. Fought were you told our brakes were high relative to others. And if they then took that mean that we couldn't fun we're having trouble fun. And have to be very patient. When in fact we were funding adequately. And one of the worst market Woolworth market environment that I had never been a part of them thirty year veteran. It's clear that a number of the firms who have posted. Were had emergency loans. Or had been nationalized. Or were having trouble. And yet we were posting the highest level. Then is excessive fall we are funding. We are finally at those levels. What we were we were questioned whether some of the other institutions can actually get funds the levels that post. Fact of what you've ever done is that ministers or officials. Were inside -- To food fuel so much I believe. What did you think it was undated. Well enough predecessors but I have a conversation we don't need to be the case that we -- -- we this is what. That's not the first conversation and I fall. About relative roles like. We had banks with -- secret loans. We -- -- that we're being nationalized. We had -- in Germany there were struggling and by the way I'm not going about torture -- but what they'll be it was struggling at that time. So there was clearly a number of bags that posting levels significantly below -- Didn't seem to often be right and so if this is gonna lead to. In impact on our ability to raise equity in the market this is that this is that the very core -- this is that the very -- Fun.

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Barclays' Diamond faces grilling over Libor

Wednesday, July 04, 2012 - 02:28