Welcome to our live coverage of Marcus Agius’ testimony to MPs. The outgoing Barclays chairman faces questions on rate-rigging by the bank’s traders and his defence of Bob Diamond. By Tom Burgis and Ben Fenton in London. All times are London time.
12.53 That’s that for our live coverage of Agius’ evidence. That was brutal — even if the outgoing Barclays chairman somehow contrived to compare himself to Donald Rumsfeld and his bank to Roger Federer.
Three key nuggets from what we heard today:
- After points in Agius’ testimony contradicted Bob Diamond’s comments to MPs, some members of the Treasury select committee are convinced that Bob Diamond misled them
- Diamond will walk away with £2m in salary and cash in lieu of pension, inlcuding being paid double his contractual entitlement of six months’ notice. He has waived bonuses worth up to £20m
- FSA chairman Lord Turner wrote to Agius in April and told him that the regulator’s “cumulative impression” is that “Barclays has a tendency continually to seek advantage from complex structures or favourable regulatory interpretations”
12.41 Here’s a last thought from Chris Giles, the FT’s economics editor:
12.37 And with that, after two and a half hours in the hot seat, Agius is
ejected into the Thames allowed to depart.
Welcome to our live coverage of Paul Tucker’s testimony to MPs probing the Libor scandal. The deputy governor of the Bank of England faces questions about his actions at the height of the financial crisis. By Tom Burgis and Ben Fenton in London with contributions from FT correspondents. All times are London time.
19.00 That’s that for our live blog. There are three main points from Tucker’s testimony.
- Did Labour ministers lean on him to get banks to lower Libor in the middle of the financial Crisis, as alleged by George Osborne? “Absolutely not.”
- Was Libor considered an ideal measure of interbank lending, even before the rigging revelations? Nope.
- Is the FSA board engaged in contingency plans should Libor collapse? Yes.
Thanks for reading. See FT.com through the evening for anaylsis of Tucker’s words. Tomorrow its the turn before the committee of Marcus Agius, Barclays’ outgoing chairman.
Today’s session of PMQs was unexpectedly boring. Amid another big banking scandal, with the future of the City at stake, somehow David Cameron and Ed Miliband got bogged down in a tedious discussion of what sort of inquiry there should be into what went on.
The Prime Minister is pursuing a parliamentary inquiry, which he wants to be led by Andrew Tyrie, the chairman of the Treasury Select Committee. Miliband wants a full Leveson-style judge-led inquiry.
Miliband obviously thinks he is onto something here, and that by getting ahead of the PM he can do what he did last year, when it looked like he had forced Cameron to set up the Leveson inquiry. And he said as much today:
What are we looking for when Bob Diamond, the ousted Barclays boss, testifies in front of the Treasury Select Committee today? Here are a few things the committee members might like to ask:
* Diamond’s memo yesterday revealed details of his phone conversation in October 2008 with Paul Tucker, deputy head of the Bank of England. It appears to reinforce the idea that the Bank wanted Barclays to submit lower figures for Libor. MPs will ask the former Barclays CEO precisely what Tucker said and whether the memo is an entirely accurate transcript of Tucker’s words.
* MPs will ask whether Tucker told Diamond the identify of the powerful “Whitehall” figure or figures who supposedly wanted Barclays to lower its Libor submissions in line with other banks. The Tories have leapt on this, suggesting that it points towards Labour ministers and advisers of the time: but what if it was a Treasury mandarin?
If you haven’t seen the Barclays pay story on the front of the FT it’s worth having a read.
The co-head of Barclays Capital, who won a bonus of £9.9m for 2010, was also awarded a long-term incentive plan for that year of £3.35m. At the same time he also received £30m of shares released under prior incentive plans.