Bob Diamond resignation: ‘Necessary and right’ decision but serious questions to be answered

BOB Diamond’s decision to step down as chief executive of Barclays drew a mixed reaction from politicians, investors and City commentators this morning.

• Deputy Prime Minister Nick Clegg said of Mr Diamond’s move: “This was the right decision on his part. People will now want us to get on with the inquiry and take further action fast to ensure that people and businesses are protected.”

• Labour leader Ed Miliband said: “This was necessary and right. It was clear Bob Diamond was not the man to lead the change that Barclays needed. But this is about more than one man - this is about the culture and practices of the entire banking system, which is why we need an independent, open, judge-led public inquiry.”

• Full story: Barclays chief Bob Diamond resigns

• Liberal Democrat peer Lord Oakeshott, who led calls for Mr Diamond to resign in the wake of the scandal, said: “Bob Diamond’s departure is a great day for democracy. He is the symbol of the gambling and greed we must root out of our banking system. Now the top priority is to catch the criminals, break off the casinos from the basic banks and make them lend. We must never again let the rich and powerful in the City or the media get their hands round the windpipe of Government.”

• Mark Field, Conservative MP for Cities of London and Westminster, told Sky News it was a “sensible and pragmatic” decision for Mr Diamond to step down. He said: “The real risk was that he would continue to be the story and this was likely to run and run for some considerable time. It’s important to state that this is not just affecting Barclays.”

• Richard Hunter, head of equities at Hargreaves Lansdown Stockbrokers, said: “The revolving doors at Barclays are working overtime.” He went on: “Discussions at the Treasury Select Committee should throw some light on the internal turmoil at the bank, while it remains to be seen whether Barclays will eventually end up with some credit in being the first to hold its hand up over the Libor investigations.”

• Chief Secretary to the Treasury Danny Alexander said Mr Diamond’s resignation was the “right decision”. He told BBC Breakfast: “Of course this doesn’t mean that there aren’t still very, very serious questions to be answered by the bank and indeed by Mr Diamond before the Treasury Committee tomorrow, and it is very important that those questions are answered and that lessons are learned, as well of course as the Serious Fraud Office’s consideration of whether prosecutions are possible in this issue. Of course, I think the bank has decided to do the right thing, the necessary thing, but there are many more questions to answer.”

• Labour MP John Mann, a member of the Commons Treasury Committee, said there should be no question of a pay-off for Mr Diamond and called on him to repay the “phenomenal” bonuses he had received over the years. “At a previous Treasury Committee hearing that I was at, he said that if something major went wrong with the bank he should lose his job and his pension,” he told BBC News. “That is the words of Bob Diamond and I shall certainly ensure they are quoted back to him tomorrow. He can then stick by his words and not accept some huge pay-off, some huge pension.”

• Move Your Money UK, which campaigns for people to move their money out of the high street banks and into mutuals such as building societies, credit unions and The Co-operative Bank, welcomed the announcement. Spokesman Louis Brooke said: “It’s only right that Bob Diamond has resigned. However, a couple of fat cats falling on their swords must not distract us from the urgent task at hand of reforming our banking system. And any talk of a golden handshake for Diamond should be completely out of the question. Rewarding failure can no longer be tolerated.”

• Louise Rouse, director of engagement at FairPensions, said: “Now that Barclays has confirmed the resignation of Bob Diamond as CEO, details must be provided of any severance payments proposed to be made to him. Remuneration at Barclays has been a source of controversy for the last few years and shareholders would likely regard it as unacceptable if a CEO departing in such circumstances was to receive severance payments. Indeed, Mr Diamond’s resignation should not mean that Barclays does not seek to claw back his bonuses received during the years when Libor was being manipulated.”