Bob Diamond's daughter comes out fighting for her beleaguered father with offensive Tweet directed at Osborne and Miliband

Bob Diamond's daughter comes out fighting for her beleaguered father with offensive Tweet directed at Osborne and Miliband

• Nell Diamond works as an analyst at Deutsche Bank
  
• #HMD is Twitter slang for 'hold my d***'
• Mr Diamond to appear before Treasury Select Committee tomorrow
• Osborne: 'Diamond resignation was right for Barclays and the country'
• The American, 60, expected to receive 13.2million shares worth £22.9million
• Barclays chief operating officer Jerry del Missier also resigns
• Chairman Marcus Agius - who also announced he was standing down yesterday - will stay on to find new chief executive
• Agius revealed he has known about Libor fixing for 'more than two years'
  
• MPs will vote tomorrow on plans to set up a full judge-led inquiry into the bank rate-rigging scandal
• Barclays release memo which points finger at Bank of England and Whitehall
  

By Matt Blake

PUBLISHED: 11:22 EST, 3 July 2012 | UPDATED: 15:39 EST, 3 July 2012

Bob Diamond's daughter today stuck two fingers up to the British establishment as she posted an offensive tweet after the Barclays Bank chief finally quit his £6million-a-year role over the Libor interest rate fixing scandal.

Nell Diamond, who is in her 20s, took to Twitter to tell George Osborne and Ed Miliband to 'go ahead and #HMD'.

The bizarre insult was soon translated by younger Twitterati as an acronym for 'hold my d***', while # is a marker used on Twitter to inspire discussions.

The tweet was hastily removed, possibly in view of the fact that the beleaguered Barclays boss is scheduled to face a grilling from the Treasury Select Committee tomorrow over the rate-fixing scandal.

Diamonds are together: Nellie with her father Bob in a private box at a Jay-Z concert last year. The young bank worker came out in support of her father today

Charity work: Nell Diamon is a regular attendee at Unicef events, pictured left in 2010 and right the following year

Nell Diamond hides behind a mask at the 2nd annual Unicef Masquerade Ball at in New York City last October

But once translated, the remark continued to provoke confusion, albeit of a different kind.

One puzzled Twitter follower wrote: 'So apparently this is what #HMD means but I'm not any clearer as to what it means in this context. #confusedbytxtspk'.

Mr Diamond and his daughter, who works as an analyst for Deutsche Bank in New York, are known to be very close.

In November last year she tweeted a picture of them together at a Jay-Z concert making his famous 'diamond' hand gesture - actually a symbol for his Roc-A-Fella Records company.

Her tweet was the latest of a string of messages posted by Miss Diamond in her father's defence.

A high-flier herself, Miss Diamond graduated from Ivy League university Princeton in 2011, where she was president of the Pi Phi sorority.

All a Twitter: Within minutes the offensive tweet was taken down, but not before it was retweeted by Times journalist David Rose

They came after Mr Diamond fell on his sword today amid intense pressure from on the bank to force him out, it was claimed.

Influence: Jay-Z is famous for his 'diamond' hand gesture - actually a symbol for his Roc-A-Fella Records company

After his resignation, his daughter Nell wrote on Twitter: 'No one in the world I admire more than my dad. 16yrs building Barclays. Shame to see the mistakes of few tarnish the hard work of so many.'

Bank of England governor Sir Mervyn King phoned chairman Marcus Agius to say he wanted the American financier out, it was claimed.

It was reported today that Mr Diamond decided to resign last night after assessing the reaction to Mr Agius' decision to quit.

But despite his resignation, Mr Diamond, 60, shocked the City by defiantly insisting that he would stay on at the bank despite the rate-fixing scandal.

Mr Diamond will be grilled in the Commons by the Treasury Select Committee tomorrow and the details could be highly embarrassing for regulators with increasing speculation that they were aware of the bank’s practices but failed to act.

His resignation will leave him free to speak openly about what went on at the bank.

Mr Diamond is said to be furious that he and the bank have been blamed for ‘lowballing’ the rates at which Barclays said it could borrow from rivals.

Bankers insist the authorities knew these rates were inaccurate but did not act because they feared the truth would destabilise the markets. It is also claimed that regulators possessed evidence of rate-fixing.

Attack: Bob Diamond's daughter lays into politicians with her re-Tweets for attacking her father

Barclays today released details of a telephone conversation between Bob Diamond and the Bank of England which Barclays believes led to systematic falsifying of Libor submissions.

An email account of the conversation is included in written evidence submitted to the Treasury Select Committee in advance of Mr Diamond's appearance before MPs tomorrow.

Barclays claims the dialogue between Mr Diamond and Paul Tucker, the deputy governor of the Bank of England, was the ultimate cause of Libor submissions being altered downwards.

The email is dated 30 October 2008 and was sent by Mr Diamond to then Chairman John Varley and Jerry del Messier, who today stepped down from the position of chief operating officer.

In it, Mr Diamond explains that Mr Tucker had told him that he had received calls from 'senior figures within Whitehall' who had expressed concern about the high rates being reported by Barclays and wanted them lowered.

BARCLAYS MEMO WHICH POINTS SPOTLIGHT AT BofE AND WHITEHALL

Barclays boss Bob Diamond has released a memo documenting a phone call he had with the Bank of England's deputy governor about the bank's submissions regarding Libor.

The memo was sent on October 30, 2008, to the then-chief executive John Varley and Jerry del Missier, who was president of Barclays Capital.

RED is Bob Diamond and stands for Robert E Diamond.

Enlarge  

The email reports that Mr Diamond asked Mr Tucker to explain to the Whitehall figures his belief that other banks were submitting Libor rates lower than their actual transactions, which had the effect of making Barclays appear out of step.

The email from Mr Diamond concludes that 'while (Mr Tucker) was certain we did not need advice, that it did not always need to be the case that we appeared as high as have recently'.

The Chancellor yesterday unveiled a parliamentary review, led by Treasury Select Committee chairman Andrew Tyrie, which will look at 'transparency, conflicts of interest, culture and the professional standards' in the banking industry.

Following a day of remarkable developments in the Libor scandal, MPs will tomorrow vote on proposals to set up a full judge-led inquiry into the bank rate-rigging scandal, a No 10 source has said.

The Commons will decide whether to endorse David Cameron's plan for a committee of peers and MPs to investigate the issue or opt for the full judge-led investigation demanded by Labour leader Ed Miliband.

He is in line to pocket 13.2million shares worth £22.9million - which he is entitled to because he has served for more than 15 years - as part of a golden pay off.

Barclays said the terms of Mr Diamond's severance package are 'still under discussion'.

Shareholders will reportedly attempt to force the banker to surrender £20million worth of unvested shares awarded to him in previous years.

Dancing dad: Bob Diamond is pictured dancing in a set of photographs posted on Facebook by his son Charlie

Enjoying herself: Nell Diamond at a party at Madame Tussaud's in pictures posted on Facebook by her brother Charlie

'Unacceptable face of banking': Bob Diamond, 60, with Jennifer, his wife of 26 years, at a lunch last year. The couple have two sons as well as daughter Nell

Alison Carnwarth, chairman of the remuneration committee, will ask Mr Diamond, who was awarded a total of £17.7 million in 2011 alone, to hand back the bonuses, Sky News said.

However, he will receive a minimum of at least a year's salary worth £1.35million.

Jerry del Missier, the bank's chief operating officer also resigned this afternoon.

He is believed to be the banker who authorised Libor-rate rigging at Barclays after Bob Diamond ended a phone call with Paul Tucker, the Deputy Governor of the Bank of England in October 2008.

Mr del Missier is said to have thought Mr Diamond had been told the bank should artificially alter their Libor submissions, in a misunderstanding.

The chief operating officer took up his current position in June 2012 after spending three years as co-chief executive of corporate and investment banking.

The chairman of the Financial Services Authority Lord Turner also put Barclays under pressure to encourage Mr Diamond to stand aside.

A source at the FSA said: 'There were phone conversations with Marcus Agius. We made it very clear there were problems that needed to be fixed to get back public trust.

'How Barclays go about that is a matter for them.'

BARCLAYS SPENT £100 MILLION ON ITS OWN 3-YEAR LIBOR INVESTIGATION

In the wake of the scandal Barclays reveals it has spent almost £100 million pounds on a three-year internal investigation into how it had submitted inaccurate Libor interest rate prices.

In documents released ahead of Mr Diamond's appearance in parliament on Wednesday, the bank said:

'The bank has invested nearly 100 million pounds to ensure that no stone has been left unturned.'

This involved an internal investigation supported by external counsel, which reviewed 22 million documents and more than 75 interviews.

The move came after Barclays was fined £290 million by UK and US regulators for manipulating the Libor, the rate at which banks lend to each other.

The BBC's Robert Peston claimed this afternoon that Sir Mervyn had forced Mr Diamond's hand by putting pressure on Barclays.

He wrote: 'What persuaded Mr Diamond and his board colleagues that he should resign was an unambiguous message to the bank from Sir Mervyn and Lord Turner that they would be happy if he resigned.'

A spokesman for the Bank of England refused to comment.

Barclays will now be urged to take action to reduce the pay off the chief executive is given after he received an £18million pay package last year.

As he announced his resignation, Mr Diamond said he was standing down because: 'The external pressure placed on Barclays has reached a level that risks damaging the franchise.'

He will tomorrow give explosive details about the bank's dealings with regulators when he appears before MPs.

Sources close to the financier said: ‘If he is attacked, he will fight back.’

Fallen on their swords: Bob Diamond (centre) and chairman Marcus Agius (right), pictured here with former chief-executive John Varley, have both resigned over the Libor rate scandal

Mr Diamond, who joined the bank 16 years ago, said in his resignation statement today: 'I am deeply disappointed that the impression created by the events announced last week about what Barclays and its people stand for could not be further from the truth.'

'My motivation has always been to do what I believed to be in the best interests of Barclays. No decision over that period was as hard as the one that I make now to stand down as chief executive.'

Resignation: Jerry del Missier stood down as Barclays chief operating officer after Mr Diamond announced he was quitting

He went on: 'I know that each and every one of the people at Barclays works hard every day to serve our customers and clients. That is how we support economic growth and the communities in which we live and work.'

He added: 'I leave behind an extraordinarily talented management team that I know is well placed to help the business emerge from this difficult period as one of the leaders in the global banking industry.'

George Osborne said Mr Diamond's resignation was 'the right decision for Barclays' and the 'right decision for the country'.

The Chancellor added: 'I think and I hope that it is the first step towards a new culture of responsibility in British banking.'

Mr Osborne acknowledged that the Government had had 'conversations' with the bank but denied ministers were responsible for Mr Diamond falling on his sword.

The Chancellor added: 'I was very clear that it was not the job of the Chancellor of the Exchequer or the Prime Minister or anyone else in the Government to make a decision about who ran, in effect, a private company, Barclays,' he said.

'This is ultimately a decision for the board of Barclays. Obviously we have had conversations over the last few days with Barclays Bank. But this is, as I say, ultimately a decision for their board.'

The Chancellor said British banks are 'broken' but there was now an opportunity to 'fix' what has gone wrong in the industry.

He added: 'I think he (Mr Diamond) has clearly taken the view that Barclays has a better future without him than with him.'

Jet set lifestyle: Bob Diamond talks to Tiger Woods on the first tee at a golf event sponsored by Barclays

Bob Diamond lifts the FA Cup with Chelsea captain John Terry in the Wembley changing room. His daughter posted the picture on Twitter

Mr Osborne said bankers involved in the manipulation of the rate 'may well stand in the dock' and insisted the Government would give a new watchdog tough powers to tackle fraudulent practices.

'There is a serious fraud investigation taking place. Unfortunately the Financial Services Authority, which conducted this investigation, felt it did not have the criminal powers to undertake a criminal investigation.

'One of the things we are urgently doing now is looking at what powers to give (a new) body before it is created next year.'

He added: 'I think it should have these new powers and that is basically what we intend to do.'

Labour leader Ed Miliband said: 'This was necessary and right. It was clear Bob Diamond was not the man to lead the change that Barclays needed.

'But this is about more than one man - this is about the culture and practices of the entire banking system, which is why we need an independent, open, judge-led public inquiry.'

PRESSURE ON BOARD TO CLAW BACK BOB'S SHARES

The board of Barclays will face pressure to curb Bob Diamond's exit pay deal which could run to around £20million despite him having to resign to avoid damaging the bank's reputation.

Mr Diamond seems likely to pick up one year of salary worth £1.35million, as well as £2.3million of 'capital contingent awards' from the Bank.

But there is less certainty around the huge potential share awards built up by Mr Diamond, thought to total in excess of £20million.

These shares were issued in previous years and cannot be vested for an agreed period, with the potential for awards to be clawed back in the event conditions are not met. Such awards have been structured in this way since the financial crisis to incentivise better behaviour and less short-termism among executives.

It will now fall on Barclays board to decide if it is appropriate to claw back all or some of the  shares that are worth in the region of £20million based on current prices.

The bank stressed this morning that Mr Diamond enjoyed the full support of the board at the time of his resignation - despite Mr Diamond's own analysis that he could not continue in the role because pressure had reached 'a level that risks damaging the franchise'.

Pay awards from previous years were issued on the basis of the bank's profitability. Board members may decide against clawing back shares on the basis that Libor manipulation did not impact upon the profitability.

Deputy Prime Minister Nick Clegg said of Mr Diamond's move: 'This was the right decision on his part.

'People will now want us to get on with the inquiry and take further action fast to ensure that people and businesses are protected.'

Since January 2011, Barclays has been found guilty of ripping off the elderly, avoiding up to £500million in tax, manipulating interest rates, mis-selling payment protection insurance and systematically exploiting small firms with the sale of complex loans.

Chairman Mr Agius said: 'Bob Diamond has made an enormous contribution to Barclays over the last 16 years of distinguished service to the group, building Barclays Investment Bank into one of the leading global investment banks in the world. As chief executive he has led the bank superbly.'

Lord Oakeshott, the former Liberal Democrat Treasury spokesman, this morning described the banker's resignation as great for democracy.

'Bob Diamond's departure is a great day for democracy. He is the symbol of the gambling and greed we must root out of our banking system.

'Now the top priority is to catch the criminals, break off the casinos from the basic banks and make them lend.

'We must never again let the rich and powerful in the City or the media get their hands round the windpipe of Government.'

Ian Gordon, an analyst at Investec, said: 'We are disappointed by Bob's resignation this morning.

'With Bob gone, expect increased recognition that the Libor investigation is a multi-bank issue rather than Barclays-specific.

'If there is "new news" to share - whether embarrassing to UK regulators or otherwise - Bob can now speak more freely at the Select Committee show-trial tomorrow.'

Lindsay Thomas, a former director at the FSA, said suggestions that the Bank of England had condoned the rate rigging practice would have been 'a Rubicon' that would have led Sir Mervyn to demand Mr Diamond was forced to quit.

He told BBC Radio 4's World at One: 'They would have been livid. I would think that the Governor would have called up Barclays and made it plain that that's what they expected to happen.

'I think there was something behind that anyway in the remarks of the Governor in talking about the situation requiring exceptional leadership which by evidence had not been given in the past.

'But I think it all really came together to say that if Barclays didn't, in effect, get rid of Diamond that the working relationship between the Bank of England and the FSA and Barclays would have irretrievably broken down.

'A major clearing bank just can't live with that.'

Meanwhile, a day of drama for Barclays ended with shares slipping into the red. Shares closed down 1.4p at 167.1p, well below the 196p they opened on last Thursday before the LIbor-fixing affair reared its head.

The scandal has wiped around £3 billion from Barclays' market value.

LIBOR: THE 'GLOBAL ECONOMY'S PULSE-RATE'

WHAT IS LIBOR?

It stands for the London interbank offer rate and is the interest banks charge to borrow from each other. Banks rely on this money to lend to customers and businesses. Its equivalent in Europe is called Euribor.

The rate is set every morning by a panel of banks and overseen by trade body the British Bankers’ Association. Each bank sets the rates at which it believes it can borrow, from overnight to 12 months. There are 150 Libor rates, spanning ten currencies and 15 time periods.

HOW DOES IT AFFECT ME?

The rate banks pay to raise money affects how much they charge on loans and mortgages.  An increase in Libor can add hundreds of pounds to households’ annual mortgage repayments or a loan to a small business.

This was seen with dramatic effect in the run up to the financial crisis, when Libor soared and lenders raised their rates. It is also used as the benchmark for trillions of pounds in complex financial investments.

Three-month sterling Libor from 2006 to 2012: The rate broadly runs in line with the UK base rate except for the crunch period in 2008 and in recent months

WHAT DID BARCLAYS DO?

Barclays’ traders speculating on movements in interest rates were manipulating Libor in an effort to make huge profits.

Its traders were conspiring with the ‘submitters’ at the bank which lodge their Libor rates every morning. Depending on the way they were betting, traders would urge these submitters to increase the Libor rate or lower it.

Barclays’ traders also conspired with ex-employees working at other banks to try to influence their Libor submissions. During the financial crisis Barclays also fiddled the figures to dupe the market into thinking it was more financially sound than it was.

Libor is often seen as a barometer of how healthy a bank is. Just as customers with bad credit records have to pay higher interest rates, banks which are deemed in poor financial health are charged more to borrow.

Barclays became anxious that its Libor rate was higher than many of its peers and that they were fiddling the figures. It decided to join the party.

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