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Barclays' Diamond loses $30m pay-off

Tuesday, July 10, 2012 - 02:12

July 10 - Marcus Agius, the Barclays Chairman, announced that the former chief executive, Bob Diamond, would not get $30m in bonuses, as he defends the bank's conduct and culture at a British government inquiry. Joel Flynn reports.

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The Libor rate rigging scandal continued apace on Tuesday as Barclays Chairman appeared before a committee of MPs. Marcus Agius was quick to announce that former Chief Executive Bob Diamond would forgo bonuses worth up to 20 million pounds. (SOUNDBITE) (English) BARCLAYS CHAIRMAN, MARCUS AGIUS, SAYING: "Bob Diamond has voluntarily decided to forgo any deferred consideration in deferred bonuses to which he otherwise would have been entitled." The committee focussed on a letter from the financial services regulator chairman to Agius. It was written in April and expressed concern about the conduct at the top of Barclays. MPs had only just seen the letter -- they didn't have a copy when they questioned Diamond last week. (SOUNDBITE) (English) LABOUR MP, JOHN MANN, SAYING: "He has -- hasn't he? -- calculatedly and deliberately misled this parliamentary committee. It cannot be possible -- can it? -- that Mr Diamond wasn't aware of this letter and had forgotten about it." BARCLAYS CHAIRMAN, MARCUS AGIUS, SAYING: "I cannot speak to Mr Diamond's testimony." Agius was at times evasive. But he did try to explain how the London Interbank Offered Rate, which underpins trillions of dollars' worth of transactions worldwide, had come to apparently be manipulated. (SOUNDBITE) (English) BARCLAYS CHAIRMAN, MARCUS AGIUS, SAYING: "The behaviour of Libor departed from its historic patterns and evidently that led to an opportunity for risk and for people to take advantage of that. We should have changed our compliance in recognition of that. We were behind the curve and that is most unfortunate." Agius admitted being aware of an investigation into possible rate manipulation in April 2010 -- long before the Bank of England. On Monday the central bank's Deputy Governor Paul Tucker said he knew nothing until the recent scandal emerged. (SOUNDBITE) (English) BANK OF ENGLAND DEPUTY GOVERNOR, PAUL TUCKER, SAYING: "(QUESTION: So only since a month ago was the Bank of England aware that the Libor had been falsified?) That this was a cesspit, yes." Barclays shares were up almost three percent after the latest testimony but there's no sign of a swift end to the scandal. Bob Diamond could now be recalled for further questioning and analysts believe there's plenty more information to come. Joel Flynn, Reuters.

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Barclays' Diamond loses $30m pay-off

Tuesday, July 10, 2012 - 02:12