10 July 2012
Last updated at 06:33 ET
Ex-Barclays boss Bob Diamond will receive his salary and benefits worth in excess of £2m, but has given up bonuses worth up to £20m after resigning amid the bank Libor scandal.
Barclays executive chairman Marcus Agius, who is being questioned by MPs about the scandal, said Mr Diamond had given up his bonus voluntarily.
Mr Agius also resigned but agreed to stay on to find Mr Diamond’s successor.
He said he “regretted deeply” what had happened and was “truly sorry”.
He told the committee he had resigned because he felt “ultimately responsible for the reputation of the bank”.
He said Mr Diamond had resigned because “it became clear he had lost the support of his regulators”. Mr Diamond’s salary was £1.35m.
The committee pressed Mr Agius, who is a senior non-executive director on the BBC executive board, on the Financial Services Authority’s (FSA) review of Barclays that said the bank was aggressive in its practices and misleading on bank stress tests.
MPs also asked if Mr Agius had passed on the FSA’s “issues” with Mr Diamond when he was appointed as chief executive. Mr Agius said that he had. In his evidence to the committee last week, Mr Diamond said he had not.
The Treasury Committee is trying to establish the role the Bank and the government played in the rate-fixing.
Last week, he told MPs he had spoken in October 2008 to Mr Tucker, who had expressed concerns about the high level of Libor – the rate at which banks lend to one another and which is the basis for millions of daily financial transactions – being submitted by Barclays.
Mr Diamond’s note of the call concluded by saying Mr Tucker had stated that “it did not always need to be the case that we appeared as high [with Libor submissions] as we have recently”.
Emails released by the Bank of England also show there was regular contact between Mr Tucker and Mr Diamond, and between Mr Tucker and senior Downing Street official Sir Jeremy Heywood, during the height of the financial crisis.
Later, Barclays lowered its Libor submissions, leading to speculation that it had done so as a a result of pressure from the Bank.
However, on Monday, Mr Tucker told the Treasury Committee that he did not give Barclays instructions to lower its Libor submissions in 2008.
He also said no government minister had asked him to “lean on” Barclays over its inter-bank lending rates.
Mr Diamond’s account of the conversation between the two gave “the wrong impression”, he added.
Mr Tucker said he was not aware of any Libor manipulation at the time, but now realised the Libor market was a “cesspit”.
Barclays has been fined £290m by financial regulators for fixing Libor, not just during the financial crisis, but also as far back as 2005, when traders manipulated rates to increase profits.
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