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Mervyn King: Barclays 'found Bob Diamond discussion helpful'

Sir Mervyn King has defended his discussion with Barclays about the then boss Bob Diamond.

He said that he did not "fire anyone," but that he simply re-stated the regulators concerns.

I said to them that I really wanted them to understand how concerned the regulators were.

Sometimes you can hear the message from the regulators and not really engage in it.

Sometimes it can be helpful to have a third party say 'Do you really understand how worried they are?' and I think they found that helpful.

I heard the concerns the regulators had and I wanted to impress upon the non-executive board of Barclays the regulators had real concerns.

– Sir Mervyn King speaking to Channel 4 news

Mervyn King: 'I did not sack Bob Diamond'

Governor of the Bank of England Sir Mervyn King ahead of his first-ever live television interview, at the studios of Channel 4 news Credit: Dominic Lipinski/PA Wire

The Governor of the Bank of England, Sir Mervyn King, speaking in his first-ever live television interview to Channel 4 news, said that he did not contribute to Bob Diamond leaving as the boss of Barclays, saying;

"I didn't fire anybody. I had a conversation which I thought would be helpful to them [Barclays] in understanding how concerned the regulators were."

He refused to confirm if he had confidence in Bob Diamond at that time.


FSA reveals concerns over Barclays

The Financial Services Authority (FSA) has released details of a meeting held with Barclays' board in February.

The FSA found its business model and earnings were challenged by the economic and regulatory environment.

It also highlighted how market perceptions continue to affect the bank's standing.

  • Material economic exposures within vulnerable Eurozone countries.
  • New banking proposals pose challenge to the business and Barclays' operating model.
  • Capital is tight given forthcoming regulatory changes plus new expectations.
  • There is still considerable work to make Barclays resolvable.


Del Missier disagrees with Diamond view of Libor action

Jerry del Missier has found himself at odds with Mr Diamond's version of events Credit: Treasury Select Committee

Mr del Missier told MPs he believed the Bank of England alone instructed Barclays to lower Libor submissions.

Bob Diamond previously told the committee that he did not believe the Bank of England instructed them to lower the inter-bank lending rate, and he had not instructed Mr del Missier to do so.

Del Missier denies Libor fixing was 'significant event'

Jerry Del Missier has downplayed the significance of Barclays fixing its Libor rate, given the other events that were happening at the time.

The entire financial system was hanging in the balance, and in the grand scheme of everything that was going on, it didn't seem a significant event, given the number of significant events that were transpiring at that time.

Within a week there was a co-ordinated, massive reduction of interest rates, which frankly rendered the whole issue obsolete.

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