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Barclays CEO finally resigns

Diamond.pngBob Diamond, Barclays CEO, has finally resigned this morning. It is a scandal that he, or any of the Bank's Board, ever thought that he could hold onto his job. He was, after all, head of Barclays Capital when the fixing of LIBOR rates took place.

It is also a measure of the confused sense of morality at the top of many banks that Diamond will now be temporarily replaced by Barclays' non-executive chairman, Marcus Agius. He, after all, had already announced his resignation over the issue. As the Wall Street Journal comments:

"The idea he should now stay on and lead the search for Mr. Diamond's successor is astonishing".

And, of course, Jamie Dimon still expects to be announcing JP Morgan Chase's next set of results, despite their ever-increasing losses from the supposedly unauthorised trading of 'The Whale'.

There is a deep-seated problem with the management of many major banks. Equally, the regulatory system has some important questions to answer. How were the banks allowed to take these risks in the first place?

Hopefully, Diamond's resignation will be the catalyst for these important issues to be faced.

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This page contains a single entry from the blog posted on July 3, 2012 8:09 AM.

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