FSA warned Barclays over Diamond's possible implication in Libor rigging
22 September 2012
Barclays had been warned by the Financial Services Authority ahead of Bob Diamond's appointment as chief executive around two years ago over concerns of possible implication in the Libor-rigging scandal.
The then chief of UK's financial regulator, told Barclays chairman Marcus Agius that his appointment could be revoked by the regulator if the US authorities' investigations into Libor were to have ''an adverse effect''.
The revelation of the meeting between FSA chief Hector Sants and Barclays' came in a memo released to the Treasury Select Committee on Wednesday and casts a shadow of doubt over a key part of Agius's evidence to MPs.
The Committee had been told by Agius in July that ''these matters'', the investigation into Libor-rigging, had not been discussed with Barclays by the FSA at the time of Diamond's appointment in September 2010.
Andrew Tyrie, the chairman of the Treasury Select Committee, wrote to Sants, ''You say that Mr Agius's statement is ''not correct''. You tell us that you told him that the FSA's view on Mr Diamond's suitability might change as a result of the Libor investigation. Your view is supported by the FSA's minutes of your meeting with him.''
The note of the meeting on 15 September, 2010 between Sants and Agius states that, ''HS (Hector Sants) explained that in reaching a judgement on this appointment (Mr Diamond's) the FSA had taken into consideration an ongoing investigation with regard to LIBOR that involved both the FSA and CFTC (Commodity Futures Trading Commission).