Bloomberg reports that Diamond said in a letter Tuesday evening to Andrew Tyrie, chairman of the UK Treasury Committee, that 'the comments made at day’s hearing have had a terribly unfair impact upon my reputation, which is of paramount concern to me. I look forward to discussing this issue with you further if you wish to do so'.
Lawmakers accused Diamond, 60, of misleading Parliament when he didn’t disclose criticism from the Financial Services Authority that Barclays exhibited 'a pattern of behavior' in an attempt to exploit accounting loopholes and game regulations. FSA Chairman Adair Turner said in an April letter to Barclays Chairman Marcus Agius that trust had been eroded by the bank’s approach to tax, regulation and accounting.
Turner’s letter revealed pressure had been building on Diamond for years before the bank’s admission that it attempted to manipulate the London interbank offered rate, the global benchmark for $360bn of securities. The letter cited concerns the FSA had about Barclays’s methods to meet regulatory capital requirements.
The Libor fine was 'the straw that broke the camel’s back', Gary Greenwood, a banking analyst at Shore Capital Group Ltd. in Liverpool, England, said in an interview. 'They’ve been gunning for Barclays for a while and looking for an excuse and this is it'.
Hit the link below to access the complete Bloomberg article: