The big news coming out of the business world this week is the resignation of Barclays chief Bob Diamond.
In what has been a turbulent epoch for Barclays, Mr. Diamond’s resignation has been welcomed by financiers and politicians alike.
Diamond’s resignation comes after the discovery of interest rate manipulation, which saw Barclays traders attempt to influence submissions for personal gain, as well as deliberately lowering the rate of submission within the bank in order to improve market perception.
Barclays shares fell by a staggering 18% at one point last Thursday, a drop thought to have cost the bank over £4 billion. This plummeting is the biggest one day fall in 3 years.
Despite on Monday 2nd July claiming he was determined to stay, Diamond’s 15 year career at Barclays and 18 months as CEO concluded on Tuesday under a rather large cloud.
In a time when recovery and stabilisation for the economy is a priority of the treasury, such damning evidence of corruption in a major high street bank is a major blow.
Politicians have slandered the actions of Bob Diamond and Barclays, with David Cameron and George Osborne yesterday stating there would be a full parliamentary investigation into the scandal. Labour leader Ed Miliband highlighted the need for thorough examination of the practices of high street banks, saying ‘this is about the culture and practices of the entire banking system which is why we need an independent, open, judge-led, public inquiry’.
One feels this may not be the last we hear about certain illicit practices within the banking world, and Bob Diamond may be the first of a long list of names who may be thrown into professional jeopardy.