United kingdom Daily news: Barclays in admission over letters

Kamis, 05 Juli 2012

Barclays in admission over letters

Barclays in admission over letters

By James Salmon

PUBLISHED: 15:45 EST, 5 July 2012 | UPDATED: 15:45 EST, 5 July 2012

Barclays has admitted it has letters from the regulator which are thought to have raised concerns about the appointment of former chief executive Bob Diamond and the aggressive culture at the bank.

Andrew Tyrie, chairman of the Treasury Select Committee, is asking Barclays for the letters.

But yesterday the bank refused to commit to handing them over.

Ex-chairman Marcus Agius: The man who hired Bob Diamond

It is thought the subject could be raised again when Barclays chairman Marcus Agius appears in front of the committee next week over the rate rigging scandal.

This sets up a potentially explosive encounter with Agius â€" the man who hired Diamond.

The existence of the letters raises further questions about Diamond, who denied any knowledge of concerns within the Financial Services Authority about his appointment.

Yesterday Standard Poorâ€™s and Moodyâ€™s switched their outlook on Barclays financial strength from stable to negative.

This means there is a strong chance Barclays could see its credit rating slashed again within the next two years.

It was downgraded by two notches last month.

A third agency, Fitch, also threatened to downgrade the bank if the rate scandal has a lasting financial impact.