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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.

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