Barclays record fine was for the numerous breeches of Principle 5 of the FSA Principles for Businesses which took place between January 2005 and July 2008. The latest reports that a phone call between Deputy Governor of the Bank of England, Paul Tucker and Bob Diamond took place on 29 October 2008, was in fact three months after this three year period was over.
I’m now asking why has the FSA failed to act on the period after October 2008 as principles 2, 3 and 5 were broken? In fact LIBOR rates had fallen significantly in the weeks up to 29 October and from previous years.
I’m concerned that Barclays are attempting to shift attention to a secondary issue, albeit one that demonstrates how Diamond called the shots in Barclays at the time and I’m calling on MP’s not to be distracted by this. The attempts to draw in the Bank Of England – who I have repeatedly clashed with over their handling of the financial crisis – appears to be a stitch up in order to create a distraction for Wednesdays Treasury committee.
I am arguing that the fundamental issues remain:
- Why did Diamond allow three years of proven interest rate deception and dishonesty?
- Why has nobody been sacked from amongst his staff?
- Why has he kept his bonus over this three year period and similarly why have his colleagues?
- Why has government not already acted to regulate the self reporting of banks to banks under LIBOR?
- Why were the Wall Street Journal warnings of May 2008 ignored?
- When will prosecutions in the UK begin?
- What is the projected cost of US class actions registered in 2011?
- When will Bob Diamond resign?
John Mann is the MP for Bassetlaw and a member of the Treasury select committee