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What the papers say: The demise of Diamond

Date: Wednesday 04 Jul 2012

What the papers say: The demise of Diamond

The Financial Times claims Bob Diamond has thrown a political grenade at the Deputy Governor of the Bank of England by publishing an email suggesting Paul Tucker gave his tacit blessing to Barclays reducing their LIBOR submissions. The paper also ponders who will take over from Diamond at the top of Barclays, noting whoever it is will face very tough choices on the future of Diamond’s baby, the investment banking arm, BarCap (Barclays Capital).

The Times also leads with the story that the Bank of England may have had knowledge of (and sympathy for) Barclays’ LIBOR fixing strategy.

The Telegraph covers the same story but writes it with a harder edge, claiming the Deputy Governor of the Bank of England “encouraged” Barclays to try to lower interest rates. The Telegraph also has an interesting sidebar story about Manchester United’s $100m public offering. As Richard Blackden reports, there is speculation the eventual fund raising could amount to $1bn.

The Guardian puts the focus on how Bob Diamond will perform when he is interviewed by the Treasury Select Committee. The sense is that he will continue fighting back by focusing on just how much the Bank of England knew about LIBOR fixing. The paper also notes that the so called “troika” (the EU Commission, the IMF and the European Central Bank) are meeting in Greece to assess how successful the second bailout programme has been for the distressed country.

The Independent asks “the LIBOR Conspiracy: Were the Bank of England and Whitehall in on it?”. The Daily Mail also notes how the Bank of England is being dragged into the LIBOR scandal. In a typically feisty second story the paper gives some good advice on how to get your own back on the banks, including making complaints and getting the best current account.

BS

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