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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.

Del Missier describes Libor fixing as 'appropriate' action

Jerry Del Missier defends Barclays' actions over Libor Credit: Treasury Select Committee

Jerry Del Missier has told MPs that the decision to lower Libor submissions in the midst of the financial crisis seemed "appropriate".

The Canadian banker said he "fully expected" staff to take into account the views raised by the Bank that the bank's rates were too high.

However, he told the Treasury Select Committee that he only spoke to the head of the money market desk and did not follow up to check what effect his instruction had on Libor submissions.