Diamond to be grilled by US politicians

Former Barclays chief executive Bob Diamond could be called to the US Congress to face questions from politicians.

UK newspaper the Guardian says it has been told by sources that Diamond (pictured) is likely to be called to Washington to answer questions about the Libor-fixing scandal.

It said two powerful committees, the Senate banking committee and the House of Representatives financial services committee, are both considering calling Diamond to testify.

Sources close to both said they were in the initial stages of gathering evidence and were ‘almost certain’ to call on Diamond after the summer recess.

The report added the banking committee would question Federal Reserve chairman Ben Bernanke and Treasury secretary Timothy Geithner on the scandal before the August break.

Meanwhile, another UK newspaper The Times reports Barclays is likely to appoint Michael Rake as its new chairman within weeks. He is currently deputy chairman.

It is thought the bank will approach the Financial Services Authority (FSA) for approval on his suitability shortly. The report said some of the bank’s largest shareholders had already give “tacit approval” to the appointment.

 

This article was first published on IFAonline

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