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English Central Bank "Eased" Diamond Out

Tyler Durden's picture


Anyone wondering if the reason why Diamond resigned less than 6 hours ago is because he suddenly grew a conscience, will be disappointed. The real reasons are two: on one hand politicians were concerned he would make it public where all the bodies were buried as reported last night, in the process taking down at least half the English political establishment, obviating his departure from the public eye immediately, and, more importantly, as BBC's Robert Peston reports, the English Fed, that "impartial" and "apolitical" institution known as the Bank of England, got involved. From Peston: "I have learned that Bob Diamond's departure was encouraged by the Governor of the Bank of England, Sir Mervyn King, and the chairman of the Financial Services Authority (FSA), Lord Turner."

From BBC:

What persuaded Mr Diamond and his board colleagues that he should resign was an unambiguous message to the bank from Sir Mervyn and Lord Turner that they would be happy of he resigned.

They were unable to force him out, because the recent FSA investigation into how Barclays attempted to rig the important Libor interest rates did not find him personally culpable.


However, as a regulated institution, it was impossible for Barclays' board to ignore the revealed wishes of the two most powerful regulators in the City.


"This is a case of the governor getting his way by the inflexion of his eyebrows," said a source.


"It is how it used to happen and it is a good thing that it is happening again".


The message that the Bank of England governor wanted Bob Diamond to go was delivered personally to Barclays' chairman Marcus Agius in a telephone conversation between the two of them yesterday.

All this of course just in case it was still unclear who really calls the shots of what happens in the world...


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Tue, 07/03/2012 - 07:39 | 2583094 LULZBank
LULZBank's picture

Easing out the Turd Bitchezz!!!

Tue, 07/03/2012 - 07:52 | 2583118 Popo
Popo's picture

Oh please.  Easing him IN to a cushy position at the BoE in 6 months.

He's guilty hundreds of times over of directly overseeing a criminal operation that defrauded investors and taxpayers by billions of dollars.  

Handcuffs?   Jailtime?   A clawback of 10 years of salary + bonus?

No.  A pat on the back, and a 6 month vacation in the south of France before coming to work for the central bank.

This is theater.  Nothing more.  What's offensive is how obvious it all is.  You're still being ass raped.  

Where is "V" when you need him?

Tue, 07/03/2012 - 08:00 | 2583148 slaughterer
slaughterer's picture

Wot! The common man on the street needs a good perp walk.  You say we aren't going to get it?

Tue, 07/03/2012 - 10:06 | 2583515 beaker
beaker's picture

Move along, folks.  Nothing to see here.  Everything's fine. Move along.

Tue, 07/03/2012 - 08:18 | 2583181 Al Gorerhythm
Al Gorerhythm's picture

What The Fuck?

Out of the sand box?

That's it?

All good?

Tue, 07/03/2012 - 09:03 | 2583322 trebuchet
trebuchet's picture

 Lord Turner was asked if he had told Barclays "diamond must go", following the resignation of the chairman. 

"No" he replied, " I only told them they didnt seem to be grasping the seriousness of the situation they are faced and that their actions so far seem to be suggesting not enough is being done " 



Tue, 07/03/2012 - 09:19 | 2583349 Zero Govt
Zero Govt's picture

So Lord Turners attitude to price rigging and theft is slappy on the wristies, "must do better chaps"

what a clueless, spineless, toad to head the FSA

Tue, 07/03/2012 - 09:25 | 2583369 trebuchet
trebuchet's picture

you actually hit the nail on the head.  With price discovery happing in the nanosecond HFT driven world, OF COURSE a single rate for the day LIBOR is a bullshit made up number. 

It was meant to be the next set of interest rates after Central bank base rate that "guided" the economy. 


Cept the people doing the guiding on behalf of the only people Allowed to manipulate the markets - namely central banks and regulatory authorities - decided to "innovate" with the "guidance" they were given nd rules of the game set by the market manipulators. So they got their wrists slapped by the powers that be. 


Diamond crossed the line by putting it about he knew where the skeletons are buried. He forgot that the people burying the skeletons als own the ground, the shovels and anything he had. 

No clearing bank can have a "bad relationship" with its central bank or regulator. So the bank was told to work out what choices it wanted to make.  Even bankers can add up two and two on matters like that. 



Tue, 07/03/2012 - 09:15 | 2583353 LMAOLORI
LMAOLORI's picture

Bank of England Allegedly Secretly Instructed Barclays To Manipulate Libor Interest Rates

Tue, 07/03/2012 - 07:39 | 2583095 Zola
Zola's picture

BarclaysGate !! Some real journalists need to earn their Pullitzer and uncover the trail that leads to Gordon Brown and Mervin King !! Perp Walks !! 

Tue, 07/03/2012 - 07:48 | 2583124 EscapeKey
EscapeKey's picture

They are just the next ones in the cascading line of central bankers, who really control the world.

They clearly have to firewall this, so no doubt Mervyn King will soon leave his post. Good thing a GS banker is lined up to take his place, those GS bankers doing God's work and all.

Tue, 07/03/2012 - 08:06 | 2583158 spentCartridge
spentCartridge's picture

Mad Merv, Bungle Brown, Tony 'psychopath' Blair & the strange case of the dissapearing 400 tons of BoE gold ...


Whos was it to sell?

Who bought it?

Where is it now?


What are they gonna use it for ...?

Tue, 07/03/2012 - 08:22 | 2583195 Al Gorerhythm
Al Gorerhythm's picture

There's investigative journalists. Matt Taibbi is the only one that comes to mind. I hope there's more.

Tue, 07/03/2012 - 07:40 | 2583097 Boilermaker
Boilermaker's picture

So, he's NOT a pillar of the community and a good samaritan?

I had him down as a modern day Robin Hood.

What a huge disapointment.

Tue, 07/03/2012 - 07:43 | 2583104 LULZBank
LULZBank's picture

Robbin' Good, you wanted to say?

Tue, 07/03/2012 - 08:18 | 2583185 Boilermaker
Boilermaker's picture

Rumor has it he's taken a leadership position at the firm of Dewey, Cheatem, & Howe.

Tue, 07/03/2012 - 07:42 | 2583102 Miss Expectations
Miss Expectations's picture

This from the Daily Mail


Barclays chief executive Bob Diamond finally succumbed to massive political and shareholder pressure today and resigned just days after the bank was fined for attempting to rig lending rates.

The American financier, 60, is in line to pocket 13.2million shares worth £22.9million - which he is entitled to because he has served for more than 15 years.

Barclays said Mr Diamond's severance package was 'still under discussion'. He could also receive a year's salary worth £1.35million and walk away with a fat pension as yet undisclosed.

Read more:
Tue, 07/03/2012 - 07:48 | 2583117 Al Gorerhythm
Al Gorerhythm's picture

Hush Money. probably tax deductable as an outgoing. Bob's "outgoing" party at Max's place.

Tue, 07/03/2012 - 08:06 | 2583159 financial apoca...
financial apocalyptic contagion's picture

its very simple

The Central bankers mean- "get the fuck out or we'll stop providing Barclays with it's monetary fix, your severance pay/stock options will collapse and we'll make sure no1 else on the street hires you ever again"

Diamond doesn't give a fuck abt shareholders n shit

Tue, 07/03/2012 - 07:43 | 2583108 evolutionx
evolutionx's picture

ECB "fear indicator" again over 800 billion

Tue, 07/03/2012 - 07:45 | 2583113 cherry picker
cherry picker's picture

Like a bunch of vampires scrambling to avoid the light of day

Tue, 07/03/2012 - 07:46 | 2583116 ak_khanna
ak_khanna's picture

The loyalties of the elected politicians lie towards the individuals, corporations and unions who have helped them get elected and they do everything in their powers to provide them with maximum benefit. The desire to do something for the upliftment and benefit of the citizens of the country takes a lower priority. This creates a cycle of corruption whereby the rules and regulations laid down favor a small percentage of well connected individuals and entities.

Tue, 07/03/2012 - 07:48 | 2583122 Dr. Engali
Dr. Engali's picture

Diamond will just be replaced with another turd who is better at covering their tracks. Had Diamond not been careless it would be business as usual.

Tue, 07/03/2012 - 07:51 | 2583128 EscapeKey
EscapeKey's picture

Can someone please explain how come these chief executives NEVER are to blame when it goes wrong, but are first in line to collect bonuses when a particular (fraudulent fixed income, in this case) division creates hefty profits?

Surely, if they collect the bonus, they are liable?

(yeah I know bankers are above the law)

Tue, 07/03/2012 - 07:54 | 2583135 LULZBank
LULZBank's picture

Have you ever worked in a multi national?

Tue, 07/03/2012 - 08:01 | 2583142 EscapeKey
EscapeKey's picture

I've worked with S&P 500 companies, I've worked with startups, I've worked with public companies, I've worked with private companies. I've pretty much done the lot.

But never has it been more true but in a corporate environment that "success has many fathers failure is an orphan". But it doesn't answer the question why allegedly orphan failures still have many in line to pick up bonuses while incorrectly identified as successes.

Tue, 07/03/2012 - 07:53 | 2583130 Hedgetard55
Hedgetard55's picture

Sir King and Lord Turner. Funny the fancy titles these English criminals give each other. In the US we call them "Dons".

Tue, 07/03/2012 - 08:52 | 2583288 Vince Clortho
Vince Clortho's picture

Sir Scam and Lord Parasite.

Tue, 07/03/2012 - 09:26 | 2583372 Zero Govt
Zero Govt's picture

the title 'Lord' is derigour for any bent croney apppointee by the British Govt

Lord Stern for example was given the task of pricing Carbon. In the most bent and crooked 'consultation' ever undertaken he proceeded to price all the costs of higher CO2 in the atmosphere, but none of the benefits (higher CO2 greens the planet makes plants grow faster, and so does increased temperature)

if you want to get as far from the truth as possible, pay M'Lord to write you a crock of shit 


Tue, 07/03/2012 - 07:54 | 2583132 Catullus
Catullus's picture

It's time to throw the baby out with the bathwater -- LIBOR should not be used a benchmark rate for anything ever again.  It's not that it needs to be reformed.  It's simply not a credible measure for interest. 

If I were a real bank, I'd take any of my unsecured and secured credit lines that benchmarked off LIBOR and begin the process of wholesale refinancing each one of the loans with different terms.  This should usher in the utter irrelevence of London and the UK in terms of global finance.  You've lost credibility.  There's no amount of firings or investigations that are going to get it back.  You threw 300 years of banking trust into the trash.  There's little wonder why the buillion banks have left London.

Tue, 07/03/2012 - 09:15 | 2583351 Umh
Umh's picture

Are expecting innovation from a bank? Banks only pretend to innovate as a means of covering their frauds. They wouldn't actually talk a chance on something new.

Tue, 07/03/2012 - 09:44 | 2583420 trebuchet
trebuchet's picture

i think peepz doing this, rumour is Barcs is heammoraging clients

Tue, 07/03/2012 - 09:57 | 2583474 terryfuckwit
terryfuckwit's picture

very well


Tue, 07/03/2012 - 07:54 | 2583133 Quincy
Quincy's picture

Easy people. Diamond is the fall guy to protect the regulators who were well aware of the fixing and actually encouraged it numerous cases. If I were him I'd be pissed too ...

Tue, 07/03/2012 - 07:55 | 2583137 Ted Baker
Ted Baker's picture


Tue, 07/03/2012 - 07:59 | 2583145 LULZBank
LULZBank's picture

Shopping obviously. What has that got to do with anything else?!

Tue, 07/03/2012 - 07:59 | 2583146 overmedicatedun...
overmedicatedundersexed's picture

for those who advocate more regs and laws a question..did not sarbox place the ceo responsible for such actions as these - have any of us seen any enforcement of this? no I thought not..

Tue, 07/03/2012 - 08:49 | 2583275 Seize Mars
Seize Mars's picture

You're joking, right?

Tue, 07/03/2012 - 07:57 | 2583141 insanelysane
insanelysane's picture

Story this morning is the the LIEBOR collaborators "misunderstood" what BOE told them to do.  The British FED had their hands in the cookie jar and they made their Bankster buddies walk the plank.  That could never happen here in the good old USSA.  Banksters on notice?

Tue, 07/03/2012 - 07:59 | 2583147 EscapeKey
EscapeKey's picture

That story was posted here on ZH yesterday, but it is a very curious defense, as the abuse stretches further back than when the "confusing" information was relayed.

Tue, 07/03/2012 - 08:26 | 2583203 insanelysane
insanelysane's picture

You are probably right as the original coverup was something like "the collaborators attempted to rig the rate but where they really successful."  It seems in the wake of that coverup collapsing we got the BOE told us to rig it.

Tue, 07/03/2012 - 07:59 | 2583144 Everybodys All ...
Everybodys All American's picture

Shocking. Simply shocking. Lord this or that. I personally can't believe a limy er man of privilege would do such a dastardly deed.

Tue, 07/03/2012 - 08:00 | 2583149 LULZBank
LULZBank's picture

Wait till the true Statesman, Farage gets a whiff of this.

Tue, 07/03/2012 - 08:04 | 2583154 GeneMarchbanks
GeneMarchbanks's picture

+1 for the sarcasm.

Tue, 07/03/2012 - 08:08 | 2583163 LULZBank
LULZBank's picture

Holding my breath for the downticks. You know that, we're a minority here.

Tue, 07/03/2012 - 08:03 | 2583153 Rock the Casbah
Rock the Casbah's picture

Clown TV (CNBC) said that Liebor-gate wasn't really a scandal since there were no "victims".

Tue, 07/03/2012 - 08:05 | 2583156 EscapeKey
EscapeKey's picture

Oh ok, so let's just yank up the yields on NBCUniversal's corporate debts, since APPERENTLY it's a victimless crime.

Tue, 07/03/2012 - 08:06 | 2583160 LULZBank
LULZBank's picture

There were no casualties, just collateral damage.

Tue, 07/03/2012 - 08:21 | 2583194 Cosimo de Medici
Cosimo de Medici's picture

Very nice.

Tue, 07/03/2012 - 08:49 | 2583277 Vince Clortho
Vince Clortho's picture

It's OK to run a massive scam against the entire country as long as it does not target a single individual.

Tue, 07/03/2012 - 08:12 | 2583168 overmedicatedun...
overmedicatedundersexed's picture

there are NO VICTIMS..just tax units. this was a tax, yah that's the ticket it was really a tax.

Tue, 07/03/2012 - 08:19 | 2583190 lizzy36
lizzy36's picture

That is actually the Defense the Banks are trying to use


....the defense motion argued. "Such false reporting in and of itself is not alleged to be, and plainly is not, a competitive act, and does not restrain trade in any market. There are no buyers or sellers, no market, no profit, and no ompetition of any kind associated with the mere reporting of rates or setting of USD Libor."

It's a very bold argument. Under this defense theory, no matter how many banks admit to manipulating Libor rates in any of the various regulatory and criminal investigations under way around the world -- Reuters has reported that Royal Bank of Scotland may be the next to reach a deal with British authorities -- or even how many banks admit to plotting with one another to suppress the index, there's no civil antitrust liability because there's no actual market for an average of interbank borrowing rates. And even if there were, the bank defendants argued, none of the plaintiffs in the antitrust case can tie damages to the banks' actions, which means none has standing to assert antitrust claims.

Tue, 07/03/2012 - 08:39 | 2583245 EscapeKey
EscapeKey's picture

What's worse - committing the crime, or defending others committing it?

The local shopping centre today had an addition - a fucking "lawyers 4 u" ambulance chaser stall. Ironically, it is located next to a gold4cash scam stall. Which I suppose is quite good, as it means those morons selling their gold at way below spot can immediately head over to get legal representation when they work out they've been scammed.

Tue, 07/03/2012 - 09:40 | 2583406 trebuchet
trebuchet's picture

regulatory misconduct is a far cry from civil damages arising out of it and even further for criminal cases - the burden of proof is far more onerous. 


I dont see all the housebuilders suing cement companies or mortgage holders suing the housebuilders for selling them more expensive houses. 


or computer users suing microsoft for failing to provide a more innovative internet access than internet explorer after microsoft lost its anti trust case. 


There needs to be a clearly proven counterfactual, not a hypothetical one



Tue, 07/03/2012 - 10:14 | 2583557 Never One Roach
Never One Roach's picture

"There's never only one roach," my exterminator tells me. I am voting for him next time.

Tue, 07/03/2012 - 08:07 | 2583161 Downtoolong
Downtoolong's picture

All this of course just in case it was still unclear who really calls the shots of what happens in the world...

And it sure as hell will never be customers or shareholders in the wonderful world of big banking.

Tue, 07/03/2012 - 08:07 | 2583162 ptolemy_newit
ptolemy_newit's picture

                                       I bet that Zero hedge is shut down.

Its the oky way that they can keep the secrets from trashing the previous UK government and the US banks.

There is no other media capable of reporting the facts honestly

Tue, 07/03/2012 - 09:08 | 2583336 Toolshed
Toolshed's picture

newbie suck-up

Tue, 07/03/2012 - 08:15 | 2583175 praps
praps's picture

One doesn't resign until one has negotiated one's 'leaving present'.  The fact that he has now resigned means the negotiations are complete.

Tue, 07/03/2012 - 08:26 | 2583205 jmcadg
jmcadg's picture

This is a perfect opportunity for Murdoch to get some retaliation for Leveson. There must be a few MPs he can turn the heat on. Surely an opportunity not to miss.

Tue, 07/03/2012 - 08:27 | 2583208 jmcadg
jmcadg's picture

For once Murdoch can do something of great use to ALL.

Tue, 07/03/2012 - 08:38 | 2583244 lizzy36
lizzy36's picture

The real penalty for Diamond is he is no loner hosting a Mittens fund raiser in LONDON.

Diamond was to co-host a $75K per person findraiser for Romney, around the time of the opening of Olympics.  Thank goodness there are 18 other co-hosts (looking for their quid pro quo) to step up for Diamond.

Tue, 07/03/2012 - 08:49 | 2583278 Seize Mars
Seize Mars's picture

Remember when Charlie Sheen starting yelling "Winning!" mid - sentence all the time?
I am going to start similarly yelling "Libor!" wherever I go. Mid-sentence.

Tue, 07/03/2012 - 09:10 | 2583335 Zero Govt
Zero Govt's picture

"...Bob Diamond's departure was encouraged by the Bank of Englands, Sir Mervyn King, and the chairman of the Financial Services Authority (FSA), Lord Turner."

Who is pulling the strings of these 2 crones/political appointees??


King and Turner have nothing to do with anything, they're both as blind as bats and have all the zest of wet rags

Tue, 07/03/2012 - 09:32 | 2583382 Apathetic or Wh...
Apathetic or Whatever's picture

One Diamond down another Dimon to go.

Tue, 07/03/2012 - 09:53 | 2583449 recidivist
recidivist's picture

Bob's last day: there he is, being helped by his driver (of course it's a Bentley) clean out his desk, in his office, on the top floor, corner office.  There is an air of hushed respectfulness as he makes his way out, pushing a small pram containing Barclay's swag, tea mugs, pens, and the like.  The security chief comes over and pulls a box of Darjeeling tea bags from his box "Tut tut, Bobby, those have to stay," he chides.  Poor bastard think all the VPs.  And yet they covet the office with its desk hewn from the trunk of a single tree that grew for a thousand years in the Amazon.  Bobby seems distracted as he does his walk of shame.  By the time he hits the elevator, he has spittle running down his cheek from the mounting contempt.  How could he have allowed such disgrace to befall such a steeped and storied institution?  How the fuck indeed?  He will be out of the game, and will not be able to show his head at the Gentleman's Club.  Perhaps relocation to a slip in Nassau would afford him the proper atmosphere to actually hold up his villainous noggin.  But I would prefer that he be exiled to the harbor in Plymouth, Montserrat, so that he might view something metaphorically comparable to the the shitstorm he has wrought upon the world.  I would that it might come to pass.

Tue, 07/03/2012 - 11:40 | 2584042 Grand Supercycle
Grand Supercycle's picture

Rally Warning Confirmed.

As mentioned earlier, further equity strength and USDX weakness expected this year according to my analysis.

Do NOT follow this link or you will be banned from the site!