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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overmedicatedundersexed's picture

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

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.


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.

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



Never One Roach's picture

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

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.

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

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.

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.

jmcadg's picture

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

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.

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.

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

Apathetic or Whatever's picture

One Diamond down another Dimon to go.

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.

Grand Supercycle's picture

Rally Warning Confirmed.

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