Bob Diamond among Barclays execs called to give evidence in Libor trial
Ex-Barclays chief executive Bob Diamond is among former executives being called to give evidence in a legal trial over the bank’s fixing of Libor, the rate at which London banks lend to each other.
Diamond resigned from his role at the bank in 2012 when news of the scandal first came to light. He will appear before the courts to defend a £70m case tabled by Guardian Care Homes (GCH), which alleges that Barclays mis-sold it products that were linked to Libor.
The bank has already been fined by numerous financial regulators for its role in the saga, but bosses are now being asked to give evidence over the fixing of rates.
The London Interbank Offering Rate, or Libor, is the average interest rate estimated by leading banks in London that they would be charged if borrowing from other banks. It underpins £350 trillion of derivatives – financial contracts that are valued in relation to other assets – and its manipulation represents serious ethical and financial fraud.
GCH is suing Barclays in an attempt to cancel the interest it was sold by the bank, after it admitted to fixing the rates. Barclays claims that the company has no legal merit within its case.
At the beginning of November, the Court of Appeal rejected attempts by Barclays for the Libor claims to be dismissed.
Diamond joined Barclays in 1996 and served as its chief executive until 2012. Other witnesses include former Barclays finance director Chris Lucas, former investment bank boss Rich Ricci and former chief operating officer Jerry del Missier.
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