View the article online at http://citywire.co.uk/money/article/a604936
King: first I knew about Libor fixing was after Barclays' fine
Bank of England governor Mervyn King says Barclays 'sailed too close to the wind' and its board was in denial over the regulator's concerns.
King said he also had a conversation with Barclays' chairman and senior independent director to ensure they were aware of the depths of the regulator's concerns as he felt 'the board of Barclays had been in something of a state of denial'.
Turner, meanwhile, said that while he did not give a regulatory instruction for Diamond to resign, he too had a conversation with Agius in which he made it clear that he should think very carefully about whether Diamond was the right person to lead the substantial change needed in the bank's culture and if the markets and the 'external world' would have confidence in him.
Andrew Tyrie, chairman of the Treasury Select Committee, however, has said regulators should not be able to bring such 'arbitrary pressure to bear on the boards of private companies'. 'It appears that governance checks need bolstering,' he said.
King is the latest figure of authority to appear before the Treasury Select Committee to answer questions on the Libor fixing scandal. Diamond, Agius, recently resigned Barclays executive Jerry Del Missier, deputy Bank of England governor Paul Tucker and FSA officials have all given testimony in the past two weeks.
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- Diamond tells MPs: 'I don’t feel personal culpability'
- Del Missier: Diamond told me to order Libor fixing
- Tucker did 'absolutely not' encourage Barclays to fix its rates
- Q&A: what is Libor and what did the banks do to it?
- Diamond gives up £20 million
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