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Entries in Barclays (3)

Tuesday
Jul032012

Barclays CEO Bob Diamond Steps Down

Bruno Vincent/Getty Images(NEW YORK) -- Another top executive at Barclays has resigned amid allegations that the U.K.-based bank tried to manipulate worldwide interest rates for its own financial gain.

Bob Diamond announced on Tuesday he was stepping down as chief executive and director of Barclays with immediate effect.  His resignation comes a day after Barclays Chairman Marcus Agius announced he was leaving his position.

Reflecting on his 16 years at the bank, Diamond said in a statement, "My motivation has always been to do what I believed to be in the best interests of Barclays.  No decision over that period was as hard as the one that I make now to stand down as Chief Executive.  The external pressure placed on Barclays has reached a level that risks damaging the franchise -- I cannot let that happen."

[CLICK HERE TO READ HIS FULL STATEMENT]

The CEO said he's "deeply disappointed" by the impression the allegations have left on the bank and said he looks "forward to fulfilling my obligation to contribute to the Treasury Committee’s enquiries related to the settlements that Barclays announced last week."

Last Wednesday, Barclays reached a $453 million settlement with regulators in the U.S. and U.K. for trying to influence the London Interbank Offered Rate (LIBOR) -- the worldwide benchmark for interest rates -- for a period of years dating back at least until 2005.

The LIBOR rate is supposed to reflect the rate at which top banks in London lend to each other.  It is used in the U.S. and other nations to set rates for student loans, mortgage rates, credit cards and car loans.

Diamond is scheduled to appear before the Treasury Committee on Wednesday.  Barclays said the search for his successor will begin immediately and will be handled by Agius, who will become full-time chairman while the bank looks for a new CEO.

Copyright 2012 ABC News Radio

Monday
Jul022012

Barclays Chairman Resigns Amid Rate-Rigging Allegations

Bruno Vincent/Getty Images(NEW YORK) -- The chairman of Barclays announced on Monday he was stepping down in the wake of allegations that the U.K.-based bank tried to manipulate worldwide interest rates for its own financial gain.

Last week, the world's third largest bank was hit with $453 million in fines by U.S. and British regulators for trying to influence the London Interbank Offered Rate (LIBOR) -- the worldwide benchmark for interest rates -- for a period of years dating back at least until 2005.  

The LIBOR rate is supposed to reflect the rate at which top banks in London lend to each other.  It is used in the U.S. and other nations to set rates for student loans, mortgage rates, credit cards and car loans.

In a statement Monday, Barclays Chairman Marcus Agius said "last week’s events -- evidencing as they do unacceptable standards of behaviour within the bank -- have dealt a devastating blow to Barclays reputation.  As Chairman, I am the ultimate guardian of the bank’s reputation.  Accordingly, the buck stops with me and I must acknowledge responsibility by standing aside."

[CLICK HERE TO READ THE FULL STATEMENT]

He apologized for the allegations, saying he was sorry that "customers, clients, employees and shareholders have been let down," and said that an audit will be launched on the bank's business practices.

Agius will remain in his position at Barclays until a successor is chosen.  The bank's board will begin its search for a new chairman on Monday.

Copyright 2012 ABC News Radio

Wednesday
Jun272012

US, UK Reach Settlement with Barclays over Interest Rate Manipulation

Bruno Vincent/Getty Images(NEW YORK) -- Regulators in the U.S. and U.K. have reached a settlement with Barclays, the world’s third largest bank, over allegations that it tried to manipulate worldwide interest rates for its own financial gain, ABC News has confirmed.

The U.S. Commodity Futures Trading Commission (CFTC) and the Department of Justice (DOJ) announced on Wednesday that U.K.-based Barclays tried to influence something called the LIBOR rate -- the worldwide benchmark for interest rates -- for a period of years dating back at least until 2005.

The London Interbank Offered Rate is supposed to reflect the rate at which top banks in London lend to each other.  It is used in the U.S. and other nations to set rates for student loans, mortgage rates, credit cards and car loans.

Barclays reached separate settlements with the CFTC, DOJ, and the British agency FSA, the Financial Services Authority in England.  More than $450 million in fines were levied, including $160 million to the DOJ.

[CLICK HERE TO SEE THE CFTC'S LEGAL FILING ON THE CASE]

Emails investigators found shows traders inside Barclays wrongfully contacted the division of the bank that influences interest rates. The wrongful conduct is said to have happened on an almost daily basis at times.

As a part of the settlement, Barclays will be required to cease and desist from further similar activity.

Copyright 2012 ABC News Radio







ABC News Radio