FSA doubted Diamond's appointment, notes reveal
Wednesday 19 September 2012
Printable
EmailThe Financial Services Authority (FSA) warned Barclays two years ago that appointing Bob Diamond as chief executive could prove unsuitable, documents revealed today.
Former FSA boss Hector Sants told the Barclays chairman that it agreed to Mr Diamond's appointment on the grounds that a Libor-rigging investigation had no "adverse effect."
But Mr Sants emphasised that the investigation was ongoing and could change the FSA's position, according to a file note released by the treasury select committee today.
Mr Diamond resigned amid intense public pressure after Barclays was fined £290 million by UK and US regulators for manipulating the Libor interbank lending rate.
Mr Sants approved Mr Diamond's appointment with certain caveats.
He raised concerns over Mr Diamond's relationship with the regulator, the notes said, and added that he had "not reached the level of openness, transparency and willingness" seen in his predecessor John Varley.
If you appreciated this article then please consider donating to the Morning Star's Fighting Fund to ensure we can keep developing your paper.
Editorial
Stand by our firefighters
Fire Minister Brandon Lewis probably had a fair idea what Sir Ken Knight would deliver when he asked him to conduct an "independent" report into fire and rescue services in England.
Features
A timely reminder of the long fight ahead
As LGBT activists worldwide celebrate anti-homophobia day we are reminded of prevailing prejudice
Fighting child abuse in the community
Bradford has seen the launch of a new campaign to battle the sources of child sex exploitation - and combat far-right bids to make it a racial issue