Barclays must answer questions, says David Cameron

Prime Minister David Cameron said today that Barclays Bank's management has serious questions to answer over allegations that it manipulated lending rates at which banks lend to each other.

Speaking during a visit to Todmorden, West Yorkshire, to inspect damage done by recent flooding, he was asked whether chief executive Bob Diamond should resign.

He said: "I think the whole management team have got some serious questions to answer. Let them answer those questions first.

"Who was responsible? Who was going to take responsibility? How are they being held accountable?"

Mr Cameron said: "This is a scandal. It is extremely serious.

"They've had a very large fine and quite rightly. But frankly the Barclays management team have some big questions to answer.

"How did this happen? Who was responsible? Who's going to be held accountable for it?

"These are issues they need to determine and determine quite rapidly.

"In terms of what happens next, I would say that the regulator should use all the powers and means at their disposal to pursue this in the way they feel is appropriate.

"I would also make the point that this happened some years ago, under a previous government. The rules in place of a previous government.

"We are changing these rules and if there is more we can do to toughen them up, we'll take that action."

Speaking later from Brussels, Mr Cameron told the BBC he was "determined" that all lessons are learned from the scandal.

"People have to take responsibility for the actions and show how they are going to be accountable for those actions and that's very important that goes all the way to the top of that organisation."

PA