Barclays boss urged to quit

Barclays boss Bob Diamond is facing calls to quit as he said all those responsible for the rate-rigging scandal should pay the price.

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'Bob Diamond has some very serious questions to answer'

When asked whether Mr Diamond should resign, Financial Secretary to the Treasury Mark Hoban told BBC Breakfast:

I think Bob Diamond has got some very serious questions to answer. He needs to explain what happened, why didn't Barclays spot it earlier, and what has changed at Barclays.

We have seen a huge scandal here in Barclays, as is clear, this doesn't just affect Barclays, banks on both sides of the Atlantic are being investigated by regulators. So we do need to get to the bottom of this. We need to find out what has happened and what lessons have been learned by the banks.


Barclays boss Bob Diamond in the headlines

Mr Diamond's highest-profile deal was Barclays' controversial acquisition of the brokerage arm of US bank Lehman Brothers for 1.7 billion US dollars (£1.1 billion) after it collapsed in 2008.

In June 2010, Mr Diamond faced a federal court hearing in Manhattan, which was looking into allegations that Barclays duped Lehman Brothers out of billions of dollars during the deal.

It is largely down to Mr Diamond's Barclays Capital division that the UK bank avoided state assistance during the credit crunch, although market turmoil has dented his former division's profits in recent months.

Controversial banker in spotlight

As one of the world's richest and most successful bankers, embattled Barclays boss Bob Diamond has never strayed too far from the public gaze.

The American was once described by Lord Mandelson as the "unacceptable face of banking" due to his lavish pay deals and has amassed an estimated fortune of around £95 million.

Barclays CEO Bob Diamond. Credit: Mike Egerton/EMPICS Sport

Mr Diamond, who became chief executive on January 1 last year, picks up a salary of £1.3 million and was reportedly in line to receive £11 million in payouts this year before waiving his annual bonus in the wake of the the rate-rigging scandal.

Within days of starting the top job at Barclays, and having passed up his bonus handout in 2009 and 2010, he angered some MPs last year by saying the time for "remorse and apology" needed to be over as banks look to support Britain's recovery.

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