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The chairman of Barclays Bank (LSE:BARC ) has resigned. I had never heard of Mr Marcus Agius until today and bet that you had not either. He says that he is the bankster to take the rap for the LIBOR rate fixing scandal. The word bollocks springs to mind.
Mr Agius was not in any way responsible for what went on. Nor was he taking home an eye watering package as a result of the profits Barclays screwed out of its customers thanks to its market abuse. Step forward CEO Bob Diamond who was aware what was going on. When Mr Agius says that Bob “was not culpable” that is plainly incorrect. We discover today that Diamond discussed what was going on with the bank of England at the time. So if he knew what was going on and then failed to stop it it, he clearly was 100% culpable.
Barclays is no doubt paying some bright PR firm megabucks to “manage this crisis.” So the company started with the idea that Diamond would forego his bonus this year. Now we have the bloke whose name I have already forgotten walking the plank even though he had no idea what was going on. And this afternoon we are being fed the line that the regulators knew about what was happening and thought it was a good idea. This is all aimed to distract us from calling for the head of Bob Diamond.
Hence, so far the scores on the doors are:
Cash cost to Barclays customers – a big number
Cash cost to Barclays shareholders – £290 million
Cash cost to the bloke whose name you too have already forgotten – nil. He will be seen as very honourable and a man happy to “take one for the team.” As a result he will get numerous job offers from other CEOs who can see the clear attraction of hiring an honourable chap as chairman who will always happily step forward to take a public rogering when other board members screw up.
Cash cost to the man who IS responsible (Bob Diamond) – nil. Offering to forego a future uncertain amount which is only a small portion of his future earnings is a small sacrifice and involves no actual cash going out of the door.
The PRs can spin, Diamond can bluster but it matters not. Bob is responsible as CEO and he will go. It is just a matter of whether his exit is speedy and undignified or protracted and horribly undignified.
