Wed, Jul 04, 2012 - Page 1 News List

Barclays CEO Diamond resigns over rate rigging

‘THE BUCK STOPS’:The investment bank admitted that it had submitted artifically low estimated of its borrowing costs from late in 2007 to May 2009arclays CEO Diamond

Reuters, LONDON

“The timing is surprising, given the robust response that Bob Diamond and Barclays appeared to be putting up over the last 24 hours,” Investec analyst Ian Gordon said.

Barclays shares, which rose on the news of the departure of Agius on Monday, added another 2.3 percent in early trading in the current session, rising to £1.723 pence, outpacing a 0.7 percent rise in the European banking stocks index. The shares were still down nearly 12 percent from Thursday’s open.

Barclays was fined US$453 million by US and British authorities, the first bank to settle in an investigation that is looking at more than a dozen others, including Citigroup, UBS and RBS.

Some analysts say Barclays has been unfairly punished for admitting to practices that appear to have been rife across the world’s big banks.

“In the short term, it has not been well served or rewarded for its cooperation with the regulators,” Gordon said in a note headed “Mob rule.”

“We expect Barclays’ sharp share price underperformance to reverse as the market takes a more dispassionate look at the facts,” Gordon wrote.

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