Diamond to get £2 million pay off

Bob Diamond will forego almost £20 million in bonuses and shares, the chairman of Barclays revealed today

Giving evidence to Parliament this morning Marcus Agius, the Barclays chairman, said Mr Diamond would be paid up to a year's salary and pension contributions worth “around” £2 million, despite being entitled to only six months' worth.

Mr Diamond, said he hoped the agreement “will help close this chapter and allow Barclays to move forward and prosper” after the bank was fined £290 million for attempting to fix the interbank borrowing rate Libor.

But that looked unlikely this morning after more revelations at the Treasury Select Committee.

It emerged that:

* Mr Diamond appears to have misled the Treasury Select Committee on at least two occasions when he gave evidence last week.

* Regulators had serious concerns about the governance of Barclays as recently as April this year.

* Mr Diamond only left Barclays after the Governor of the Bank of England told Mr Agius that the regulators had lost confidence in the chief executive.

Documents released by the Treasury Select Committee revealed that the Financial Services Authority wrote to the Chairman of Barclays expressing the regulator’s worry about the banks “pattern of behaviour”.

In a letter from the chairman of the FSA to Mr Agius in April this year Adair Turner wrote that: “I wish to bring to your attention our concerns about the cumulative impression created by a pattern of behaviour over the last few years, in which Barclays seems to be seeking to gain advantage through the use of complex structures, or through arguing for a regulatory approach with are at the aggressive end of interpretation of the relevant rules.”

He adds at one point that Barclays had “used up” the FSA’s “goodwill”.

But in his evidence last week Mr Diamond claimed that the FSA were “pleased” with Barclays.

Questioning Mr Agius John Mann stated: “Mr Diamond has been misleading this committee, hasn’t he?”

Mr Agius denied this but admitted that the relationship with the FSA had been strained.

“In our interaction (with the FSA) over regulatory judgements we tended to argue the toss,” he said.

“The extent to which we have done that was causing problems for the FSA.”

However Mr Mann said the letter showed Mr Diamond “Calculatedly and deliberately misled” Parliament.

Mr Agius said: “I can’t speak for his testimony.”

Mr Agius also described the moment when it became clear that Mr Diamond would have to stand down.

He said he received a call from the Bank of England advising him that Sir Mervyn King, the Governor wanted to see him and the most senior independent board member Sir Michael Rake.

“On Monday morning (it was conveyed to us) that the Governor wanted to see me and Sir Michael Rake at 6pm that evening.

“We had a conversation with him at which it was made very plane that Bob Diamond no longer enjoyed the support of his regulators.

“(He made clear he had) no power to direct us but told us in absolute term what situation was. You can imagine it was a shock to us. He was not capable of being misinterpreted.”

Mr Agius said he realised the board had “no choice” but to call for Mr Diamond’s resignation and together with Sir Michael.

“Mike Rake and I called on Bob Diamond. We explained what had happened.

“He was not in a good place as you can imagine. The conversation was not long. He asked for time to talk to his family. We left confident that he would make the right decision.”

By the following morning his resignation was announced.

Mr Tyrie pointed out that, in his evidence, Mr Diamond said he did not know if Mr Agius had spoken to the regulators and asked whether Mr Agius had told him about the conversation with the Governor.

Mr Agius confirmed he had told Mr Diamond of the conversation – but said again he could not comment on his evidence to MPs last week.

Suggested Topics
Start your day with The Independent, sign up for daily news emails
Have you tried new the Independent Digital Edition apps?
ebooks
ebooksA special investigation by Andy McSmith
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs General

Recruitment Genius: New Business Sales Executive - Opportunities Across The UK

£15000 - £30000 per annum: Recruitment Genius: Join a fast growing, UK based I...

Recruitment Genius: Events Consultant

£24000 - £32000 per annum: Recruitment Genius: A position has arisen for an ex...

Recruitment Genius: Injection Moulding Supervisor

£20000 - £26000 per annum: Recruitment Genius: Busy moulding company requires ...

Recruitment Genius: Sales Advisor - £35,000 OTE

£18000 - £35000 per annum: Recruitment Genius: A Sales Advisor is required to ...

Day In a Page

The difference between America and Israel? There isn’t one

The difference between America and Israel? There isn’t one

Netanyahu knows he can get away with anything in America, says Robert Fisk
Families clubbing together to build their own affordable accommodation

Do It Yourself approach to securing a new house

Community land trusts marking a new trend for taking the initiative away from developers
Head of WWF UK: We didn’t send Cameron to the Arctic to see green ideas freeze

David Nussbaum: We didn’t send Cameron to the Arctic to see green ideas freeze

The head of WWF UK remains sanguine despite the Government’s failure to live up to its pledges on the environment
Author Kazuo Ishiguro on being inspired by shoot-outs and samurai

Author Kazuo Ishiguro on being inspired by shoot-outs and samurai

Set in a mythologised 5th-century Britain, ‘The Buried Giant’ is a strange beast
With money, corruption and drugs, this monk fears Buddhism in Thailand is a ‘poisoned fruit’

Money, corruption and drugs

The monk who fears Buddhism in Thailand is a ‘poisoned fruit’
America's first slavery museum established at Django Unchained plantation - 150 years after slavery outlawed

150 years after it was outlawed...

... America's first slavery museum is established in Louisiana
Kelly Clarkson: How I snubbed Simon Cowell and become a Grammy-winning superstar

Kelly Clarkson: How I snubbed Simon Cowell and become a Grammy-winning superstar

The first 'American Idol' winner on how she manages to remain her own woman – Jane Austen fascination and all
Tony Oursler on exploring our uneasy relationship with technology with his new show

You won't believe your eyes

Tony Oursler's new show explores our uneasy relationship with technology. He's one of a growing number of artists with that preoccupation
Ian Herbert: Peter Moores must go. He should never have been brought back to fail again

Moores must go. He should never have been brought back to fail again

The England coach leaves players to find solutions - which makes you wonder where he adds value, says Ian Herbert
War with Isis: Fears that the looming battle for Mosul will unleash 'a million refugees'

The battle for Mosul will unleash 'a million refugees'

Aid agencies prepare for vast exodus following planned Iraqi offensive against the Isis-held city, reports Patrick Cockburn
Yvette Cooper: We can't lose the election. There's too much on the line

Yvette Cooper: We can't lose the election. There's too much on the line

The shadow Home Secretary on fighting radical Islam, protecting children, and why anyone in Labour who's thinking beyond May must 'sort themselves out'
A bad week for the Greens: Leader Natalie Bennett's 'car crash' radio interview is followed by Brighton council's failure to set a budget due to infighting

It's not easy being Green

After a bad week in which its leader had a public meltdown and its only city council couldn't agree on a budget vote, what next for the alternative party? It's over to Caroline Lucas to find out
Gorillas nearly missed: BBC producers didn't want to broadcast Sir David Attenborough's famed Rwandan encounter

Gorillas nearly missed

BBC producers didn't want to broadcast Sir David Attenborough's famed Rwandan encounter
Downton Abbey effect sees impoverished Italian nobles inspired to open their doors to paying guests for up to €650 a night

The Downton Abbey effect

Impoverished Italian nobles are opening their doors to paying guests, inspired by the TV drama
China's wild panda numbers have increased by 17% since 2003, new census reveals

China's wild panda numbers on the up

New census reveals 17% since 2003