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Diamond Cracks: Here Are The Shocked Reactions

Tyler Durden's picture


A bottle of Bollinger has brought down Bob. This is just the beginning, because one knows Barclays by definition was not alone. Many, many more banks will emerge, hopefully their bankers were not quite as dumb as Barclays' henchmen to discuss in retainable, email format their plans for interest rate manipulation, although we doubt it. In which case many more executives will fall as all those "conspiracy theorists" over the past 4 years are proven right once again, and as politicians scramble to cover up all loose ends which may expose them as instrumental (and bribed) in the fact that the "market" is once big farce. In the meantime, courtesy of the WSJ, here are the shocked, nay stunned, reactions to Bob Diamond's resignation (whose severance payment, certainly in the millions, is still unknown)

U.K. Chancellor of the Exchequer George Osborne:

Mr. Osborne welcomed Mr. Diamond’s decision to resign and said he hoped it marked a first step toward “a new era of responsibility” in British banking.

Speaking to the British Broadcasting Corp., he said that recent revelations about attempts to rig interbank rates had “in a way opened a door on the very bad practices in banking” that had led to the 2008 financial crisis.

“We need to see a change in the culture of banking and today we saw a step towards that,” Mr. Osborne said. “We are determined to play our part in bringing about this change.”

*Simon Willis, Daniel Stewart & Co investment bank:

“Firstly, we find it difficult, given the dearth of senior banking management talent, [to see] who Bob Diamond’s replacement might be. We believe that it will be harder for Barclays to achieve its growth and ROE targets. At the very least there will be a hiatus period.

“Secondly, the Libor manipulation affair was clearly by no means confined to Barclays. This begs the question which other senior executives in other banks (U.K. and overseas) face being ousted.

“Thirdly, circumstances suggest that a number of people in the regulators — meaning the FSA and the Treasury, as well as the Bank of England — must have known the detail of Libor fixings.”

*Richard Hunter, Head of Equities, Hargreaves Lansdown Stockbrokers:

“The revolving doors at Barclays are working overtime. Discussions at the Treasury Select Committee should throw some light on the internal turmoil at the bank, whilst 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.

“It is difficult to estimate how much of the news is now priced in to the shares in the absence of more detail. One thing is for certain, namely that the consensus of the shares as a cautious buy has been creaking in recent days.”

*Move Your Money U.K., a campaign to move money out of high street banks:

“It’s only right that Bob Diamond has resigned. Both those who committed these crimes and the executives responsible for overseeing them have to take personal responsibility for the disgraceful behavior of the bank and, where appropriate, face criminal prosecution. 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.

“George Osborne has announced a parliamentary inquiry into the Libor fixing scandal. However the inquiry falls well short in terms of both scope and powers of the full judicial inquiry demanded by the New Economics Foundation and supported by Labour.”

*Ian Gordon, asset managers Investec:

“CEO Bob Diamond has resigned. Whereas such an outcome was ultimately expected by many, in the light of Bob’s robust response to the political/media fire-storm over the past few days, the timing will surprise. If there is ‘new news’ to share (whether embarrassing to U.K. regulators or otherwise) Bob can now speak more freely at the Select Committee show-trial tomorrow. More importantly, Barclays must quickly refocus attention onto its attractive organic story and undervalued ‘defensive’ franchise.”

*Gary Greenwood, investment group Shore Capital:

“This is a massive U-turn. I can’t remember anything like this happening before, but ultimately they’ve reached the right decision. [Bob] Diamond was a key drag to sentiment and bowed to ongoing shareholder and political pressure.”

“[Marcus] Agius standing down yesterday looked to some like a dereliction of duty,” the analyst added. “In times of difficulty, you want the chairman to make the tough decisions.”

*Oriel Securities, stockbroking and advisory firm:

“Bob Diamond’s resignation was a surprise, leaving a key management gap and another major uncertainty over the investment case, it said. Oriel said the CEO will still attend the Treasury Select Committee hearing Wednesday and his resignation is likely to make him less inclined to hold back on speaking out about potential FSA or Bank of England failures associated with historic Libor rate manipulation.

*John Cridland, CBI Director-General:

“Bob Diamond has made his own decision that it is the right thing to do to resign as Barclays’ CEO.

“The focus now must be to urgently restore confidence in the banking system. This is vital if Britain’s businesses are to get the banking services they need to grow the economy.”


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Tue, 07/03/2012 - 07:09 | 2583034 Colombian Gringo
Colombian Gringo's picture

Too bad he wasn't hung.  Think of how many investors he cheats, how much money he has, and how he will walk away like Corzine. Crime pays if you are a Bankster.

Tue, 07/03/2012 - 07:15 | 2583046 WTFx10
WTFx10's picture

"Crime pays if you are a Rothschild's Bankster"

fixed it for you

Tue, 07/03/2012 - 07:19 | 2583055 Popo
Popo's picture

In banks all over England, email servers are being wiped and shredders are working overtime...



Tue, 07/03/2012 - 07:28 | 2583075 financial apoca...
financial apocalyptic contagion's picture

yea why the fuck weren't there raids happening last week across all the banks

these agencies suck, give me a gun and a badge and i'l get confessions from all these bastards in a day

btw any1 out with odds on the next one fired?


Tue, 07/03/2012 - 07:35 | 2583088 jmcadg
jmcadg's picture

How about that slimeball Heston. RBS is fucked, everyone knows it. Liquidity Stephen not computer glitches, what a moron.

Tue, 07/03/2012 - 07:45 | 2583111 financial apoca...
financial apocalyptic contagion's picture

Cockscucker Hester
the way he's been declining his million dollar bonuses, he's shitting his pants on his way to work everyday
Its time for him to "relieve" him self from his duties 


Tue, 07/03/2012 - 12:25 | 2584238 JeffB
JeffB's picture

Isn't waterboarding financial terrorists legal in the U.S. now?


Tue, 07/03/2012 - 07:14 | 2583036 Boilermaker
Boilermaker's picture

Barclay's equity up almost 4 1/2%

ES climbing.

Good thing the rigged nature of the marketplace is now exposed and will be fixed.

Tue, 07/03/2012 - 07:16 | 2583043 falak pema
falak pema's picture

this whole LIBOR thingie epitomizes a true principle of libertarian ideology : that markets and private sector financial actors ARE above governments! The beauty of zero public control of the financial market; auto regulation my market itself, is personnified in all its pristine beaty here! It was supposed to be picture perfect since 1970 days when it emerged and Austrian logic was the rage along with Friedman floating rates! 

Now this! Eat your heart outs libertarians! You have Facts in your face not theory! Auto regulated sacred free markets indeed!  Von Mises has the measles! 

Tue, 07/03/2012 - 07:19 | 2583056 overmedicatedun...
overmedicatedundersexed's picture

falak, are you really that dim witted? dropped on your head early in life? gov and banks are ONE you dip.

Tue, 07/03/2012 - 08:44 | 2583229 falak pema
falak pema's picture

really, you've read history and come to that conclusion and its poured in concrete! 

Ever heard of the Knights Templars? They were the MIC/CIA and the bankers of the Crusades. They failed as the ideologically indoctrinated MIC. The king burnt them as dangerous bankstas and took their money away. Thats a fact which has escaped you.

In Italy Charles V destroyed the power of the Medicis, as they were dangerous as bankers, as Popes and heads of FLorence, powerful feudal city. Not on.

In France Charles VII destroyed banker Jacques Coeur. Louis XIV destroyed FOuquet his banker. Henry VIII made the feudals his own puppets and made king's bank a monopoly as he was also head of church. 

Only under Victorian Britain did the bankers become agents at par with royalty and governement. In the USA that tradition went further as US industrial Oligarchs have been more powerful than governments since post civil war days. In a nation the size of a continent in the throes of industrial revolution.

So over two thousand years, only in post Victorian UK and post civil war USA has there been such an accumulation of financial power. Two centuries of Pax Britannia and PAx Americana have consecrated this supremacy.

So your vision is limited to this period; which may be coming to an end under its own dead weight. 

Don't be dogmatic and think you are the cat's whiskers; you are not. History goes back a lot further than your glib quibbling. As for the future...its being written and it always rights what went wrong, sooner or later! Thats entropy correction.

And, Don't forget FDR who stopped the rot in the 1930-1940 period, with the tools he has at his disposal. (Not perfect, far from it).

Tue, 07/03/2012 - 09:10 | 2583342 Bahamas
Bahamas's picture

That's why banks financed revolutions that all ended with the death of the kings and the establishment of so called democratic governments.

Tue, 07/03/2012 - 09:48 | 2583432 falak pema
falak pema's picture

that's the power game, you win some you lose some. Now its no longer the king that wins always. I'm not complaining! But I don't want the bankstas to be the new eternal kings; no way!

Tue, 07/03/2012 - 07:22 | 2583060 Dr. Engali
Dr. Engali's picture

You have no idea what you are talking about. Barclays' is just doing what their government bids them to do.

Tue, 07/03/2012 - 07:46 | 2583115 tabasco71
tabasco71's picture

This is the real juice - as recently intonnated by the Diamond MAD murmurings... I'll be glued to his committee appearance tomorrow.

Tue, 07/03/2012 - 09:30 | 2583379 Bob
Bob's picture

Of course, the money has nothing to do with it.  The pirates are just patriotic at heart. 

Tue, 07/03/2012 - 12:16 | 2584208 old naughty
old naughty's picture

...or, the patriots are just piratec at heart.

Skull and Bones by the Knights Templar.

If .gov and banksters are one, then that sits on top in the triangle may be playing another unseen (untold?) game.

But, but, why now?

Tue, 07/03/2012 - 07:22 | 2583061 Popo
Popo's picture

Except the banks would actually have imploded had it not been for the regulatory response to bail them out, grant them government-sponsored 0% borrowing and grant them infinite concessions.

So the notion that government involvement "prevents" abuse is also silly. 

The problem is not one of regulation or deregulation -- it is one of collusion.    Fascism is the problem.

Tue, 07/03/2012 - 07:32 | 2583082 Terrorist
Terrorist's picture

falak, you idiot, subject hijacking troll, Libertarians believe strongly in anti fraud enforcement.

Tue, 07/03/2012 - 07:55 | 2583136 falak pema
falak pema's picture

like the popes believed in doing god's work...belief has to face the acid test of acts; you are what you do! THe popes killed in inquisitorial mode, the free market kills in oligarchy mode. See the fact from the fiction; free yourself from dogma. 

Western civilization's progress is based on only three principles: reason, observe facts, then act. Nothing else. The libor is the expression in all its simplicity that markets are NEVER perfect. So eat your beliefs or admit you belong to a dogmatic church not to western free thinking. 

Tue, 07/03/2012 - 08:45 | 2583264 Lebensphilosoph
Lebensphilosoph's picture

Western civilization's progress is based on only three principles: reason, observe facts, then act. Nothing else.

It's 'progress' is based in the superior intellect of its peoples.

Tue, 07/03/2012 - 09:01 | 2583309 falak pema
falak pema's picture

ha Zaraustra! blood line eh? Which blood line would that be?

Semitic of crooked nose? Greek of doggy bag style frolick?, Dirty latinos? Filthy french? Dumb teutonic? Ah, Superb english ! (not to be mixed with those gaelic louts and pict stouts wearing skirts)!

Hey Philofax? Are you Oswald Mosley's sprained ankle or Enoch Powell's blocked bowel? 

Tue, 07/03/2012 - 10:28 | 2583634 Hohum
Hohum's picture


Why do you say most libertarians believe in anti fraud enforcement?  I don't get that vibe from this site.

Tue, 07/03/2012 - 07:34 | 2583087 sablya
sablya's picture

I suggest that this whole disaster is primarily a regulatory problem, in that the regulators ARE the problem.  The regulators wanted LIBOR suppressed and had no legitimate mechanism for bringing that about.  So they turned to the bankers to do it.  

And don't throw this in the face of Austrian economics.  That's unfair! Limited regulation is not the hallmark of Austrian economics but is a common thread among men of different schools.  Milton Friedman, a monetarist, was just as in favor of limited regulation as was Hayek.  


Tue, 07/03/2012 - 07:38 | 2583093 GeneMarchbanks
GeneMarchbanks's picture

Ah, falak finally your direct speech draws attention. Notice how many more hits you're getting speaking a simple truth instead of your customary elegant prose?

What you fail to see is this --now daily-- failure of "market" Theology is being experienced by our mouthbreather friends as the death of God. Mark the half-baked rationalizations these sad saps are clutching at, mind the pathetic attacks on your summary of happenings.

It's like the Athenians with Socrates.

Tue, 07/03/2012 - 07:57 | 2583140 falak pema
falak pema's picture

not being Socrates, I prefer chardonnay to hemlock! 

Tue, 07/03/2012 - 07:59 | 2583143 Acet
Acet's picture

Here's a little one for you Falak:

- In the UK, regulations from the Financial Services Authority say that "expert banks" have to hold less Reserve Capital than other banks. You know, "expert banks" like RBS, Llloyds (that needed to be taken over by the state) or Barclays

Sounds a lot like an artificial market barrier to entry, and this is just one of many, many rules and regulations that hinder new entrants.

Unsurprisingly, banking in the UK, a nation of 60 million people is around 90% dominated by 5 big banks.

The truth is that the situation we have now did not came about due to the free market, quite the opposite: things are the way they are due to deep regulatory capture. If there were no Regulator to be captured, the market landscape in banking in the UK would be very different (and probably far more robust).

Tue, 07/03/2012 - 08:19 | 2583171 falak pema
falak pema's picture

All you are saying is is that like in politics and in war, the game is too important to leave it in the hands of "specialists".

That is in essence the whole game of power in society since inception. Oligarchs always control the levers of power in the end, unless they are kept at bay. How? Not by zero regulation! That makes it easy as they have their own militia to power their way in. So people's reps can keep them out? Not always, but we don't know better than separation of powers as guiding principle.

Your take, that ideally, free markets would never be manipulated, does not pass the litmus test of being free. What Montesquieu said in the face of Machiavelli, (they allegedly met in Hell), was : I know you believe in Oligarchy manipulate, I believe in having you out in the open and your mirror opposite as well out in the open. And I believe in having a neutral juge to then regulate the game. Separate the market players from the neutral juge.

Too easy the game when two Machiavellis regulate it amongst themselves. Thats Oligarchical reality. WIthout the juge it would be worse! 

Nothing is perfect for men as reality is in our image. 

Tue, 07/03/2012 - 08:43 | 2583258 eddiebe
eddiebe's picture

I'm with you on this one, Falak. The issues raised in this banter are complex and go to the core of who we choose to be. The fact is though that what the Libertarians and indeed the Republicans tout as "Free markets" are far from free, even though they hide behind that curtain. Therefore, just like in society at large there have to be laws and law enforcement to even the playing field for everyone, otherwise all confidence is lost by the masses and chaos ensues.

 It looks now like we are lucky enough to increasingly get peaks at how we all have been gamed by those ' free market players'. I only hope the rage of those gamed doesn't consume all the positives we have accomplished along with the parasitic rot that grew along with the achievements.

Tue, 07/03/2012 - 08:48 | 2583272 Acet
Acet's picture

Oh, not at all - I think regulation is needed: the idea of free markets is bullshit given that if you remove any and all kind of state influence in the market you end up with "the guy with the most buddies with guns wins" and all kinds of negative-externality problems.

However, the LIBOR situation is not at all a good example of a free market failure since, at least in the UK, the companies that were in a position to manipulate the LIBOR only got to be were they were exactly because their market was highly manipulated through regulatory capture.

On the other hand, regulated markets in a Capitalist system suffer from the problem that in the Capitalist game, anything goes, including deploying your capital to influence regulators and regulations in your favour (i.e. pay to change the rules of the game). I reckon extremelly strong Democratic and Judicial institutions, plus the kind of society were being seen as socially selfish is highly frowned upon are needed for such a system to work half-way deccently. Neither of that are in display in the US or the UK and the closest to that ideal I can think of are the Nordic countries.

Tue, 07/03/2012 - 09:03 | 2583325 Lebensphilosoph
Lebensphilosoph's picture

It's the old conundrum, isn't it? How do I have anarchy without some archos imposing it?

Tue, 07/03/2012 - 08:03 | 2583152 PoorByChoice
PoorByChoice's picture

falak I enjoy your rants but this one I'm not so sure about

Disclosure: I'm a libertarian (I think LOL!)

The reason the banks were able to do this was as much because they were allowed to become so overpowerful in the market place as well as  lightly regulated. So just a key few individuals could corrupt the LIEBOR.

And they became so powerful because of the undue influence on our political classes..  Thus they maintained high barriers to competition enterering the ring against the behemoths.

The big banks looked pretty much like nationalised industries long before they became so in fact.

Frankly if we are into a blame game we should start with the voters in the west. Anyone in the last 20 years who says they didn't realise they were voting for corrupt zealots is:-

a) Lying  (Even to yourself still counts, YES you know who ARE!...)

b) Naive  (too lazy to learn the truth about your favoured candidate...)

c) Part of the problem  (Government non jobs, PFI, benefits culture)

As long as we had our 2 tropical holidays a year and SKY Sports on our big screen tv we wouldn't rock the boat, so we ended

up with the government we deserve

I tried regularly to influence opinion of friends and family and just received ridicule, now they listen a little more but it's taken the depression to do that!

Still, keep testing my belief system falak, I'm learning just how important questioning the choices we make is since visiting ZH......

peace (amongst friends anyway!)



Tue, 07/03/2012 - 08:43 | 2583259 Lebensphilosoph
Lebensphilosoph's picture

So how did Soviet Russia work for you, eh?

Tue, 07/03/2012 - 08:59 | 2583281 falak pema
falak pema's picture

how did it work for the people? your bull shit reasoning has got you alzheimered? Stalin was an Oligarch. He was no people's rep! He is the best example of a true Machiavellian prince. He robbed the Marxist church of its liturgy and turned it to his own advantage. That's perfect sleight of hand. We see the same play today by men of similar mindset using the free market liturgy to the same effect. Different churches same result! 

Having philosopher in your avatar doesn't seem to seep into your brain. Trickle down effect not working?

Tue, 07/03/2012 - 09:09 | 2583339 Lebensphilosoph
Lebensphilosoph's picture

Stalin was an Oligarch.

How convenient that is for you. And the entirety of Soviet history is the history of Stalin too. I'll have to remember that.


Having philosopher in your avatar doesn't seem to seep into your brain.

Perhaps. But my rac ... sorry, the genetic heritage of my line of ancestors still puts me ahead of you and yours as far as the brain is concerned.

Tue, 07/03/2012 - 09:45 | 2583423 falak pema
falak pema's picture

lol, coming down to brass tacks aren't we? Noblesse oblige, I'll leave you with that illusion like the people did with Louis XVI.

Tue, 07/03/2012 - 10:23 | 2583605 MrButtoMcFarty
MrButtoMcFarty's picture

I love the smell of ignorant hubris in the morning!!


PS....I got your ancestor's brains right here motherfucker.

Tue, 07/03/2012 - 11:56 | 2584121 Andy_Jackson_Jihad
Andy_Jackson_Jihad's picture

President Obama,

Don't you have a press conference to give or fund raiser to get ready for?

Tue, 07/03/2012 - 09:34 | 2583386 Lebensphilosoph
Lebensphilosoph's picture

your bull shit reasoning has got you alzheimered?

'Bullshit' reasoning, is it? Would you call stacking up a straw man to set it alight and dance about it like a mad pagan on Imbolc reasoning then?

What happened with Russia is, in terms of the structures of power, exactly what you opine about the consequences of Libertarianism; what happened in terms of the ideological lunacy that this power was to impose upon every aspect of life is another matter altogether.

Go write another trashy novel instead of torturing us with your tortuous logic.

Tue, 07/03/2012 - 09:49 | 2583425 Saro
Saro's picture

Clearly, this fraud perpetrated by banks already loaded up under a staggering number regulations and the complicitness of the regulators hired to prevent just this scenario only underscores the need for those regulation and regulators. Just like the solution to too much debt is more debt, the solution to big government failure is bigger government. 

This time will be different.


Tue, 07/03/2012 - 07:10 | 2583038 overmedicatedun...
overmedicatedundersexed's picture

I now will retire my tin foil hat..enough with conspiracy ..I will don my tin foil it's a fact hat.

Tue, 07/03/2012 - 08:46 | 2583266 TheFourthStooge-ing
TheFourthStooge-ing's picture


I now will retire my tin foil hat..enough with conspiracy ..I will don my tin foil it's a fact hat.

It's a fact: you can get blood from a stone.

Tue, 07/03/2012 - 07:15 | 2583040 Al Gorerhythm
Al Gorerhythm's picture

Diamond should have called Servpro. Clean up "Like it never really happened".

Tue, 07/03/2012 - 07:13 | 2583041 williambanzai7
williambanzai7's picture

Ding dong the witch ain't dead yet.

Tue, 07/03/2012 - 07:24 | 2583064 Al Gorerhythm
Al Gorerhythm's picture

But the fat lady's warbling, stage right.

Tue, 07/03/2012 - 07:19 | 2583048 sleestak
sleestak's picture

This might mean trouble for all sorts of "fixing" that's been going on. "Erase the emails" "lose the disks" "I'm sorry, this connection isn't working"...  All sorts of cartel activity is at risk now.  Diamond is BIG.  Executed one of the best scalps of the crisis by buying Lehman and had the stamp of approval from all sorts of plugged-in-ati.  That he has fallen is a heads up to his ilk that collusive activity of the cartels can be exposed and has real, personal consequences, even when protected by the CBs.  That's when rats start ratting (and swimming).  Gold next? 

Tue, 07/03/2012 - 07:20 | 2583057 TheLuckyGeneral
TheLuckyGeneral's picture

silver surely?

Tue, 07/03/2012 - 07:25 | 2583068 Al Gorerhythm
Al Gorerhythm's picture

Don't call him Shirly.

Tue, 07/03/2012 - 07:32 | 2583080 TheLuckyGeneral
TheLuckyGeneral's picture

Im over Under, and Under's over Dunn....

Tue, 07/03/2012 - 07:43 | 2583105 Al Gorerhythm
Al Gorerhythm's picture

You've been Dunn overed?

Tue, 07/03/2012 - 07:49 | 2583126 bluestone
bluestone's picture

It would be nice if something good did come out of this, but as usual, it won't.  They will sacrifice a few scapegoats, look repentant on the surface, and promptly go back to their old ways.  For a day or two they will think about things, but then they will stop thinking and double down on what they were doing before.  It's how the world works, especially when money, power and glory are involved.

Tue, 07/03/2012 - 09:49 | 2583398 Bob
Bob's picture

GlaxoSmithKline has agreed to pay a record $3 billion to settle U.S. regulators' charges of aggressive marketing and the selective use of data from clinical trials in its promotion of drugs beyond their authorised uses, including an antidepressant that one of its sales reps called the "happy, horny, skinny pill".

GSK says problems from 'different era'

In a statement issued Monday, GSK CEO Andrew Witty said the problems at the heart of the case originated "in a different era for the company" and that since then the company has instituted reforms and learned from its mistakes.

He expressed regret on behalf of the company and said action to resolve the issues that prompted the lawsuit has been taken "at all levels in the company" in the U.S.

"We have fundamentally changed our procedures for compliance, marketing and selling," he said in the statement. "When necessary, we have removed employees who have engaged in misconduct.

Another corporate monstrosity "learns its lesson" and pays the fine with shareholder money.  As usual, some token players were sacrificed and now all is well.

Tue, 07/03/2012 - 08:01 | 2583151 StychoKiller
StychoKiller's picture

Most people don't know it, but when a file was erased under  MS-DOS (for example), all the del command did to the file was

change the first letter of the filename to a special character, indicating that the file storage space could be used for a different file.

The actual contents of the file could be recovered as long as the OS didn't re-use the file's sectors again.

Tue, 07/03/2012 - 07:21 | 2583052 Al Gorerhythm
Al Gorerhythm's picture

Max Kieser must be foaming at the mouth like Pavlov's dogs at a Tubular Bells concert.

Tue, 07/03/2012 - 07:20 | 2583053 Dr. Engali
Dr. Engali's picture

George Osborn to next Barclays' CEO: Okay dipshit .. No fucking emails . How many times do we have to cover criminal activity 101?

Tue, 07/03/2012 - 12:00 | 2584138 Andy_Jackson_Jihad
Andy_Jackson_Jihad's picture

Don't they know about the encrypt button in outlook?  If anyone asks, give them the wrong password/pin, a shrug and a "golly, that's wierd.  1-2-3-4-5 worked just yesterday.  These darn computers!  I guess we'll never know what communications took place"

Tue, 07/03/2012 - 07:21 | 2583058 cherry picker
cherry picker's picture

It is all bullshit!

That is why we need transparency as mankind cannot be trusted, regardless who it is.

How many times are we "shocked" to learn that the man or woman on the pedestal achieved that status or remains there due to lies and worse.

Even the regulators are as bad as those breaking the law.


Tue, 07/03/2012 - 07:22 | 2583063 Al Gorerhythm
Al Gorerhythm's picture

Nnnnoooooooooooo! Not the regulators too?! Tell me it ain't so.

Tue, 07/03/2012 - 09:43 | 2583416 Bob
Bob's picture

There is not a more perilous or immoral habit of mind than the sanctifying of success.

                            Lord Acton

Tue, 07/03/2012 - 07:21 | 2583059 Quintus
Quintus's picture

Bank of England "Eased Diamond Out"


One does not challenge the establishment.

Tue, 07/03/2012 - 07:26 | 2583069 Mitzibitzi
Mitzibitzi's picture


Tue, 07/03/2012 - 07:28 | 2583074 Al Gorerhythm
Al Gorerhythm's picture

One must.

Tue, 07/03/2012 - 07:33 | 2583084 Winston Churchill
Winston Churchill's picture

SOP is the BoE to invite the banks board to lunch ,and express

disatisfaction with the executive. the board then 'invites' a resignation.

What did they eat yesterday, humbled pie, for getting caught.

Tue, 07/03/2012 - 07:24 | 2583066 EmileLargo
EmileLargo's picture

Having worked in the City of London, I can attest to the fact that there is no shortage of fools who think Diamond is some kind of genius. It doesnt take a genius to make money by levering up 96:1 on easy credit and then get the central bank open the spigots to bail you out when credit tightens. Some genius.

Tue, 07/03/2012 - 07:24 | 2583067 apberusdisvet
apberusdisvet's picture

Looks like their shit does stink after all.


Arrogant bastards

Tue, 07/03/2012 - 07:28 | 2583073 Boilermaker
Boilermaker's picture

Considering he'll never be prosecuted for ANYTHING and will leave his post with hundreds of millions of pounds in compensation, I'd say he has won.

Tue, 07/03/2012 - 07:33 | 2583085 augie
augie's picture

Depends how you look at it. 



One is the path of earthly wealth, and another is the path of NIRVANA.

Let the follower of Buddha think of this and, without striving for reputation, let him ever strive after freedom.


Tue, 07/03/2012 - 07:41 | 2583101 Boilermaker
Boilermaker's picture

....right.  I have a feeling he's probably more to my thinking.

Tue, 07/03/2012 - 07:30 | 2583077 r00t61
r00t61's picture

Whenever I hear the phrase "British Banking" I can't help but think of the movie Mary Poppins.

Must be one of the few times in history that a banker chose his family over fractional-reserve-lending-generated profits.

Too bad it was only a children's movie.

Tue, 07/03/2012 - 07:32 | 2583083 Miss Expectations
Miss Expectations's picture

Champagne Bollinger, A Houise, A Style, A Certain Philosophy

Que the Bollinger website music



Tue, 07/03/2012 - 07:36 | 2583091 Boilermaker
Boilermaker's picture

Can we get back to rigging the ES?

Thank you!!!  There she goes.  Straight up just as ordered.

Tue, 07/03/2012 - 07:42 | 2583103 walcott
walcott's picture

so wtf does any of this mean?

They all end up getting billions of dollars in bonuses.

Like the Blankfein congressional inquiry.

The Jamie Dimon Presidential cuff links inquiry.

Question is.

Is there anybody within the United States that gives even a half a shit about the United States anymore?

Our entire country is fucking Detroit now.

Tue, 07/03/2012 - 07:43 | 2583106 Acet
Acet's picture

Having worked in Investment Banking in London, in several different banks including one large UK bank (RBS), i call tell you from experience that the UK one was the one were people were the least concerned with rules and regulations. The comparisson of RBS with the likes of Deutsche in terms of Compliance was shocking (in RBS compliance was something you worried about at the end of the year and only for the reports that had to be filled-in).

From what I've heard, BarCap (Barclays Capital, their investment banking arm) was the same (I've heard the expression "management had their own law").

I wouldn't be overly surprised if it turns out that all the major UK banks were carelessly flounting most rules, unconcerned about leaving traces of it in e-mails and text-chat programs since they were "covered". After all, more than 50% of campaign contributions to the party currently in Government came from financial institutions and consistently both the Prime Minister and the Chancellor have protected banks and bankers.

The PM doesn't want an independent, open enquiry on Banking like the one done for the Press because it's quite likelly that the level of flaunting the law and using of political influence was far, far larger in banks than in newspapers.

Don't forget, the UK is the country of "Light Touch Regulation" (read: no regulation) and infinite rehypotecation, where politicians and employees of regulatory agencies often move on to highly paid "jobs" in financial institutions (for example, Tony Blair left government and got a $250.000 per-year non-executive board membership at JP Morgan). The place is seriously corrupt in a "I'll help you now and you help me later" style and the justice system serves only to "keep the riff-raff in line" (just notice the ultra heavy prision sentences given to people like a single mother that was given a pair of stollen socks during the "riots").

Tue, 07/03/2012 - 07:45 | 2583107 bluestone
bluestone's picture

Whenever they make comments such as this: "Mr. Osborne welcomed Mr. Diamond’s decision to resign and said he hoped it marked a first step toward “a new era of responsibility” in British banking," we know this is exactly what will NOT happen.  Instead the opaque, irresponsible, dishonest behavior will be re-doubled, even as the shades are pulled down even tighter. 

It's fun to read the news once you learn the code.

Tue, 07/03/2012 - 08:55 | 2583298 Sands8oo
Sands8oo's picture

100% bluestone - laughed when I read that line.

Should be closer to ushering in a "new era of even more opaque rampant criminal activity in British banking"

Tue, 07/03/2012 - 08:20 | 2583192 shovelhead
shovelhead's picture

Banks and Govt.:

Mr. & Mrs. Sweeney Todd.

Lovely sausages.

Tue, 07/03/2012 - 08:38 | 2583242 Txo
Txo's picture

This whole big deal about BD resigning is a joke. So the guy loses his job ... if that's all he s gonna lose, then what s the news? Another bankster that get s away unpunished.

Osborne “We need to see a change in the culture of banking and today we saw a step towards that,” Mr. Osborne said. “We are determined to play our part in bringing about this change.”


Right. If you really wanted to, you could star today and heads would be rolling in no time. Drop the blade or stfu.

Tue, 07/03/2012 - 18:09 | 2585400 Shigure
Shigure's picture

Too right! When's the trial? He resigns and that's it? Prosecute!

Tue, 07/03/2012 - 08:44 | 2583257 Vince Clortho
Vince Clortho's picture

One guy takes the fall for the whole rotten group.  Their Political Puppets declare the problem solved.

The public buys into it.

The game continues

Tue, 07/03/2012 - 09:41 | 2583412 Eally Ucked
Eally Ucked's picture

"Many, many more banks will emerge, hopefully their bankers were not quite as dumb as Barclays' henchmen to discuss in retainable, email format their plans for interest rate manipulation, although we doubt it." So author of this post is all hope that the rest of them were smarter and we won't learn anything more about behind the scene machinations? Yeah, then we will still believe that all regulations are working and they don't screw us up. 

Tue, 07/03/2012 - 10:37 | 2583692 realitybiter
realitybiter's picture

So we now move to the rat on rat stage.


Hmmmmmmmm....I think there are convenicides, I mean, "suicides" in our near future.  You think Dimon is going to wait for Diamond to start talking?  "You put the sob down like a rabid dog, goddammit!  I ain't goin' to jail for some limey pussy who can't take the heat!"


And I always thought the law was to weak to force the rats to eat each other.  I figured that outside forces were going to have to intervene.  this is perfect.

Dirty deeds done dirt cheap.


Popcorn is almost ready.

jump fuckers.

Tue, 07/03/2012 - 10:52 | 2583791 theprofromdover
theprofromdover's picture

The amazing thing is, they are all such low-calibre people. If I met Little Bob in an elevator, I would think he was stationery manager (deputy).

Agius looks as though he is just about capable of hosting a cucumber sandwich high-tea for the ladies who lunch.

And how they thought Agius' falling on his sword would be enough to satisfy the embarrassed regulators ???

-where is Rodgin Cohen when you need him-

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