LIBOR Cyborg - IV

I'm sorry, I really didn't want to do one more, but what else is there? 

The Chairman resigns, taking moral responsibility for an executive decision. CEO digs his heels in and not-so-subtly threatens the Central Bank. Next morning, like a palace coup, the CEO is gone. His replacement will be chosen by the going-going-gone-but-not-really Chairman. There's news that the COO might be following the CEO. Isn't it simply delightful when a scandal is upon us? 

It is becoming obvious that the Board decided to sacrifice the Chairman in order to save the CEO, but things got so far out of hand that he simply couldn't be saved. Its also come to light that the CEO was, in effect, asked to be thrown out by BOE Governor's eyebrows Juicy. 

Oh and wait for it, there's a Parliamentary meeting on the issue tomorrow, at which the now-ex CEO is going to testify and where he reportedly plans to put a part of the blame on BOE by saying that he was told by BOE officials that you know, you don't really have to tell them what you think your actual LIBOR rates are.  And whatever little incentive he might have had to keep his trap shut must have been totally thrown out of the window by this removal, right? Cannot wait for that to get over now...

The BBC says The City of London is in panic. One man's panic is another man's entertainment you know...

Reads:

Bob Diamond: For Queen and Country?

As always, TED with an informatively entertaining read

LIBOR Cyborg - III

Whoa, whoa, whoa... This is huge.


Barclays CEO Bob Diamond has resigned today with immediate effect. From the press release:

3 July 2012

Barclays PLC and Barclays Bank PLC (Barclays)

Board changes

Barclays today announces the resignation of Bob Diamond as Chief Executive and a Director of Barclays with immediate effect.  Marcus Agius will become full-time Chairman and will lead the search for a new Chief Executive.  Marcus 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.

The search for a new Chief Executive will commence immediately and will consider both internal and external candidates.  The businesses will continue to be managed by the existing leadership teams.

Bob Diamond said “I joined Barclays 16 years ago because I saw an opportunity to build a world class investment banking business. Since then, I have had the privilege of working with some of the most talented, client-focused and diligent people that I have ever come across. We built world class businesses together and added our own distinctive chapter to the long and proud history of Barclays. My motivation has always been to do what I believed to be in the best interests of Barclays. No decision over that period was as hard as the one that I make now to stand down as Chief Executive. The external pressure placed on Barclays has reached a level that risks damaging the franchise – I cannot let that happen.

I am deeply disappointed that the impression created by the events announced 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. That is how we support economic growth and the communities in which we live and work. I look forward to fulfilling my obligation to contribute to the Treasury Committee’s enquiries related to the settlements that Barclays announced last week without my leadership in question.

I leave behind an extraordinarily talented management team that I know is well placed to help the business emerge from this difficult period as one of the leaders in the global banking industry.”

Commenting, Marcus Agius said, “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.  As Chief Executive he has led the bank superbly.  I look forward to working closely with the Chief Executives of our businesses and the other members of the executive Committee in leading Barclays world class businesses in serving our customers and clients and delivering value for our shareholders.”

Source: FT Alphaville and  here


The search for his replacement would be helmed by Marcus Agius, the Chairman who resigned yesterday. I suppose he'd be staying on now till a new CEO is found.


And here's the letter he sent to Barclays staff yesterday: CEO Letter

Somebody's actually losing his job? That's a new one, no?