Cameron presses Barclays’s Diamond with call for accountability

Resignation Calls

Matthew Oakeshott, a member of the ruling Liberal Democrat party who sits in Parliament’s upper House of Lords, said if Diamond had any shame he would resign his position. A former minister for the City, Paul Myners, who also sits in the House of Lords for the Labour Party, said executives should face criminal charges for failings at the bank.

“If Bob Diamond had a scintilla of shame, he would resign,” Oakeshott told BBC News last night. “If Barclays’ board had an inch of backbone between them they would sack him.”

Myners told the BBC’s “Newsnight” program that “this is the most corrosive failure of moral behavior I have seen in a major U.K. financial institution in my career.”

Former Barclays CEO Martin Taylor said the board of the bank must decide whether Diamond should stay.

“It is a matter for the board to decide” whether Diamond “can be the person to turn the page on this, or whether he is part of the problem,” he told BBC Radio 4’s “Today” radio program.

‘Criminal Charges’

“Fines and public criticism will not stop these behaviors,” he said. “These behaviors will not stop until the people perpetrating it or responsible for overseeing them face the prospect of criminal charges and the prospect of going to jail.”

Andrew Tyrie, the chairman of Parliament’s cross-party Treasury Committee, said he would summon Diamond to appear before lawmakers to account for the bank.

At stake is the credibility of the decades-old Libor system and the securities and loan products that rely on it, ranging from an estimated $554 trillion in interest-rate contracts, according to the U.K. Financial Services Authority, to mortgage and credit-card payments made by consumers around the world.

Barclays pledged to pay $200 million to the CFTC, $160 million to the Justice Department and 59.5 million pounds ($91 million) to the FSA. The fines were the largest in the history of the CFTC and FSA.

Citigroup Inc., Royal Bank of Scotland Group Plc, UBS AG, ICAP Plc, Lloyds Banking Group Plc and Deutsche Bank AG are among companies regulators are investigating. A total of 18 banks are surveyed as part of the process of determining Libor and related rates.

Bloomberg News

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