Following yesterday's resignation of the Barclays Chairman, CEO Bob Diamond had suggested a hard fight to remain on the job. This morning Diamond resigned though the details of his exit compensation remain uncertain. As Joe Stiglitz has pointed out in his interview with The Independent, Diamond has spoken often about future bonuses being curtailed though nothing about the years of bonus money made based on phony business. Diamond, of course, has a lot of company in that department.
The Guardian is also reporting this morning that Barclays COO Jerry del Missier will also be resigning soon. Adding to the drama of the situation is Diamond's scheduled meeting with British MP's tomorrow. Diamond has allegedly told others that he would open up the scandal and detail how much previous (Labour) governments knew about the ongoing Libor scandal. Others have responded that unlike Capital Hill battles, the system in the UK is different and reacts quickly and harshly to such attacks.
Who will step in next to be Chief Gambler in Charge for Barclays? Anyone from his side of the banking world will be severely tainted. Not that being tainted has been an obstruction to power in the banking world.
The man who set up Barclays Capital and was responsible for much of Barclays’ increased profits stepped down as chief executive on Tuesday after calls for his resignation from politicians and shareholders.
Chancellor of the Exchequer George Osborne welcomed his resignation. "I think it's the right decision for Barclays, I think it's the right decision for the country because we need Barclays bank focussed on lending to our economy and not distracted by this argument about who should be in charge," Osborne told the BBC. "I hope it's a first step to a new culture of responsibility in British banking."
He led a storm of political criticism of Barclays in the wake of the London inter-bank offered rate (Libor) manipulation scandal.
