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Barclays Libor Scandal: “Diamond Lied”

Posted by Larry Doyle on July 11, 2012 7:31 AM |

I hope the crowd on Capitol Hill is tuned in very closely to ongoing developments in the Barclays Libor scandal. The lightweights who allow the likes of Jamie Dimon to come and go with nary a glove being put upon him could learn more than a few lessons from members of Parliament engaged in undressing former Barclays CEO Bob Diamond.

What did we learn yesterday?

“Diamond lied to the committee,” David Ruffley, a committee member from the U.K.’s ruling Conservative Party, said at yesterday’s hearing.

Not leaving much to interpretation there. Perhaps the designation of Lie-more scandal is truly appropriate.

The only question I have regarding the UK parliamentary hearings on this scandal is whether those being questioned, including Mr. Diamond, are testifying under oath. If not, they should be.

The point of contention that broke yesterday revolves around the nature of the relationship Barclays bank had with its regulator, the FSA. Mr. Diamond now tries to tiptoe his way through this minefield with his reputation having taken an enormous hit. In an attempt to defend himself, Bloomberg reports, Diamond Offers to Rebut Claims He Misled U.K. Lawmakers.

While trying to defend himself, perhaps Mr. Diamond can shed a little light on some of the bombshells launched by UK Treasury select committee member Pat McFadden. Included in the bombshells are questions about the culture within Barclays and what role the regulators played in this scandal. This 5-minute clip is required viewing by members of Congress.

Get Diamond back on the stand. Make sure he is required to testify under oath.

Go refill your popcorn. The unwind of this scandal is only getting started.

Larry Doyle

Related Sense on Cents Commentary
Barclays Libor Scandal: Who’s Really to Blame? 
Barclays Libor Scandal: When Did Manipulation Start? 
Barclays Libor Scandal: How Big Will This Get?
Barclays Libor Scandal: Reports Regulators Knew; Time for Independent Investigation and Eliot Spitzer
Barclays Libor “Price Fixing”: Collusion Is Illegal. . .

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I have no affiliation or business interest with any entity referenced in this commentary. The opinions expressed are my own. I am a proponent of real transparency within our markets so that investor confidence and investor protection can be achieved.

  • Obsvr-1

    Libor, another turd in the FIRE industry bucket …

    So, LIE-MORE should be the Umbrella term for the entire FIRE industry

  • Ron Larson

    There are a couple of articles in today’s New York Times about how corporate corruption seems to be to new norm now. In one editorial, the write claims that corporations are doing everything they can, within legal constraints, to maximize profits.

    I need to write back and tell him that he is wrong about an important point. The legal constraints fell apart years ago. There is, and has been, almost zero accountability for any of the corruption and law breaking that has gone on. The governments (not just the US) are either incompetent, or complacent, in this corruption.

    Prosecutors will throw a woman in jail for trying to get her kid in a better school district. But they will do nothing about millions and billions being stolen by well connected financial movers and shakers.

  • coe

    Is this is the same Bob Diamond who legend has it stood on the trading floor in NY and proudly proclaimed why the acquisition of ABN Amro was necessary and transformational, and then after losing the trade to RBS, backpedaled in true revisionist history and changed his commentary that he dodged a bullet…the same Bob Diamond that told all his employees that the integration of the firm with the remnants of Leman USA was a high quality problem – that all good people would be found other jobs in the combined organization, and then summarily fired tons/1000s of Barclays employees to make room for the same Lehman folks that bankrupted their company…I’m sure if you checked the currency value then and now, you would find that Bob, the great banking leader that he is, has pocketed tens of millions of dollars in generational wealth, while the shareholders got screwed, and the employees got fired and f*****

    Is it any wonder why other banks, hedge funds, and private equity players are tossing his name around as the next savior?

    Pathetic, disgraceful, amoral, criminal! Why on God’s earth would any corporate or financial client continue to do business with Barclays? Board members should be asking these tough questions of senior management everywhere!

  • RB

    Let’s be honest.. this is not just a Barclays problem.. it is systemic to the ENTIRE group of TBTF banks! Why is it we are not seeing Congress go after the U.S. banks over this same issue. There is not a chance in you know where that Barclays could have pulled off any of this manipulation alone. Why are the U.S. airwaves devoid of any mention of the exact same problem here? It was going on here too.. at the very same time.. and the Fed knew all about it as early as 2007 if not before and did nothing. That makes them complicit. There simply is no rule of law here any more with the exceptions that it is still applied and with great fervor to the average man or woman on the street and any company that is not considered TBTF. The big boys all seem to have a gold-plated get out of jail free card.. .in other words.. a free pass, no matter how corrupt they have become.

    Why do we continue to stand for this? We have two supposed “leaders” vying for the Presidency of this entire country, why aren’t they all over this? We know darn well neither of them has any viable plan for improving the economy, so at least they could start to come to grips with obvious corruption and financial fraud, as an alternative. But I guess there’s not much hope of that happening in this country any more.. integrity among the elite simply doesn’t appear to exist any longer.

    • coe

      Right on point , RB, and yet another sign why this great country of ours is sinking into the abyss…if you track the decline and fall of all civilizations dating back to ancient Greece, there was a decline in morality, followed and teamed up with a decline in ethical integrity, and ultimately a fall of a once great civilization…the Feds should be tossing all the leaders of these banks to the curb, and clawing back money for the shareholders, and sending the guilty to jail…TBTF is really Too Big to require Bail

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