Barclays chief executive Bob Diamond finally bowed to public and political pressure and resigned this morning.
After securing board support on Friday evening and overseeing the resignation of chairman Marcus Agius yesterday, Diamond has discovered that a week is a long time in banking and politics these days.
Barclays has been under significant pressure over the last six months but Diamond’s fate was finally sealed when the LIBOR-rate fixing scandal became public.
The London Interbank Overnight Rate is the average interest rate estimated by leading banks in London that they would be charged if borrowing from other banks. LIBOR underpins £350 trillion of derivatives and its manipulation is a serious ethical and financial fraud.
By manipulating this rate, Barclays’ traders and shareholders were able to profit significantly. It’s fair to point out that several other main high street banks, who between them have 75% of the current accounts, are also accused of manipulating the rate.
What is most shocking is that this story first broke in the Wall Street Journal in 2008. The industry rounded on the report’s authors. One of the key authorities, the Bank of International Settlements, which “fosters international monetary and financial cooperation and serves as a bank for central banks“, stated that “available data do not support the hypothesis that contributor banks manipulated their quotes to profit from positions based on fixings“.
This view was supported by the IMF. This brings to mind Adam Smith’s maxim that, “People of the same trade seldom meet together, even for merriment and diversion, but the conversation ends in a conspiracy against the public, or in some contrivance to raise prices.”
We will be covering Diamond’s appearance at parliament tomorrow as he will be able to speak more freely about his knowledge of the rate and this weekend, we’re producing a feature on banking’s role in building a sustainable future.
Like our Facebook Page
Understanding The True Environmental Impact of Dentistry
Incredibly Important Benefits of Effective Ethically Made Anti-Virus Face Masks
Green Entrepreneurs Find Creative Ways to Balance Ethical Goals with their Retirement Objectives
The Surprising Environmental Benefits of Using an Organic Mattress
Everything You Need to Know Before You Start Using Renewable Energy in 2021
The Curtis Institute of Music Makes Facilities More Energy Efficient
What Can Ecotourists Learn from Visiting Chernobyl?
Mastering the Art of Trading Bitcoins Profitably and Sustainably
5 Essentials for Promising Eco-Friendly Businesses to Thrive in a New Economy
Bitcoin – an Eco-Friendly Cryptocurrency That is Rocking the World!
Eco-Friendly Devices Are Amazing for Improving Indoor Air Quality in Urban Areas
6 Financial Benefits of Solar-Powered Homes
From Store to Door with Minimal Impact: How Companies Are Eco-Friendly Innovators
The Eco-Friendly Evolution of Bitcoin Over the Years
A Guide to Investing In Renewable Energy Stocks in 2021
Creative Ideas to Practice Eco-friendlier Consumerism
9 Simple Changes for Creating an Energy-Efficient Home
Why Eco-Friendly Solutions Can Work for Your Home
How to be More Environmentally-Conscious in 2021
Hawkers Launch a Truly Innovative Eco-Friendly Sunglass Line
- Editors Choice12 months ago
10 Green Companies With Amazing Environmental Initiatives
- Features12 months ago
5 Sustainable Home Improvement Ideas To Improve Your Home’s Value
- Energy11 months ago
10 Amazing Energy Saving Hacks for Spring
- Invest10 months ago
4 Super Simple Solutions To Create The Perfect Eco-Friendly Home