So, unlike my prediction of just yesterday, the Diamond geezer has gone.
Like a revolving door Marcus Agius, the Chair of Barclays Bank, resigned on Monday.
Now, two days later, Bob Diamond has resigned and Agius is back.
What is going on?
Well, first there has been a massive public and political backlash against Barclays Bank over this culture of corruption, exposed through the LIBOR crisis.
Worse than this though Bob Diamond, as one of the UK’s highest paid CEOs, is seen as directly accountable for this.
He could have withstood such a backlash, as demonstrated by the Board accepting that Agius could go and Diamond could stay.
So why did Bob Diamond resign?
All the media pressure got to him?
No, he’s far more thick-skinned that that.
All the political pressure got to him?
The Board got to him?
Has to be.
But the Board got to him after the political and media backlash.
Remember, the Board got to him after accepting that he would stay and Agius would go.
So why did the Board change their mind?
Because Bob Diamond starting threatening to spill the beans on all the skeletons in the UK Banking sector’s closet.
Specifically, yesterday, he threatened to expose the Bank of England’s role in the LIBOR scandal.
There’s the rub.
That changed all as now, it was Bob Diamond trying to save his skin potentially at the bank’s own reputation with the new lead UK regulator.
So Bob had to go.
It will be interesting to see what he says to the Treasury Select Committee tomorrow.
Meanwhile, I would stop blogging about it but this story is a critical change in the history of UK and possibly global banking, so it’s too important to ignore.
Here’s the story so far:
Key emails: how Barclays manipulated Libor - The Telegraph
Banking crisis: why Bob Diamond is not the only one to blame - The Telegraph
Letter from Barclays chief Bob Diamond to Andrew Tyrie - The Telegraph
Barclays rate fixing scandal: Bob Diamond's letter to staff - The Telegraph
SFO in talks with City regulator over Barclays – Osborne - The Telegraph
Chairman of Barclays 'set to quit' over Libor rate-fixing scandal - The Independent
The case against Diamond’s departure - Financial Times
Barclays scandal: Bob Diamond resigns – as it happened - The Telegraph
The Libor Conspiracy: were the Bank of England and Whitehall in on it? – The Independent
'Fred Goodwin Law' is mooted to ban disgraced bankers for life – The Independent