Barclays CEO Bob Diamond has resigned under pressure admist an interest rate rigging scandal. Barclays will pay $453 million to settle a U.K. and U.S. investigation that revealed traders manipulated the Libor to prop up the bank's position and traders' wallets. Diamond said his decision to leave "was the right thing for the bank."
Other departures have already taken place or are expected to soon. Marcus Argius, chairman of Barclays, and Jerry del Missier, chief operating officer, also resigned.
Barclays issued three separate statements so far about the resignations:
- "Board Changes," July 2 (about Argius)
- "Board Changes," July 2 (about Diamond)
- "Management Changes," July 3 (about del Missier)
The statement about Diamond's resignation included this long quote from the outgoing CEO:
"I joined Barclays 16 years ago because I saw an opportunity to build a world class investment banking business. Since then, I have had the privilege of working with some of the most talented, client-focused and diligent people that I have ever come across. We built world class businesses together and added our own distinctive chapter to the long and proud history of Barclays. My motivation has always been to do what I believed to be in the best interests of Barclays. No decision over that period was as hard as the one that I make now to stand down as chief executive. The external pressure placed on Barclays has reached a level that risks damaging the franchise – I cannot let that happen.
"I am deeply disappointed that the impression created by the events announced last week about what Barclays and its people stand for could not be further from the truth. I know that each and every one of the people at Barclays works hard every day to serve our customers and clients. That is how we support economic growth and the communities in which we live and work. I look forward to fulfilling my obligation to contribute to the Treasury committee's enquiries related to the settlements that Barclays announced last week without my leadership in question.
"I leave behind an extraordinarily talented management team that I know is well placed to help the business emerge from this difficult period as one of the leaders in the global banking industry."
- Read the Board Changes statement about Diamond. What's the rationale for including the former CEO's long quote? How is this effective or ineffective in conveying the bank's message?
- Assess the three statements. How do you explain the bank's strategy of issuing these separately? Why did the board do this, and was it the best approach?