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Sunday Papers: Barclays to ask Diamond to cut pay-off

And it has emerged that German regulators have launched an intensive probe into Deutsche Bank over the Libor fixing scandal.

Sunday Papers: Barclays to ask Diamond to cut pay-off

Top stories

  • The Sunday Telegraph: Barclays’ board is to ask former chief executive Bob Diamond to give up at least part of a possible £17 million pay-off to save the bank’s reputation from further damage.
  • The Sunday Telegraph: The Government must find up to £50 billion of further spending cuts or tax rises to stop public debts spiralling out of control by 2060, the Office for Budget Responsibility will say in its annual Fiscal Sustainability Report on Thursday.
  • The Independent on Sunday: It has emerged that German regulators have launched an intensive probe into Deutsche Bank – one of the City's biggest employers – over the Libor fixing scandal.
  • The Independent on Sunday: Big banks and insurers have been forgiven more than £60 million in fines for mis-selling and other wrongdoings by the City watchdog since 2010.

Business and economics

  • The Sunday Telegraph: Marks & Spencer is likely to report its worst performance in a decade this week, leaving chief executive Marc Bolland with a challenge to turn the retailer around.
  • The Independent on Sunday: Paul Moore, the HBOS whistleblower, is launching a lobbying group – The New Wilberforce Alliance – to spearhead a campaign for a full public inquiry to clean up the banking industry.
  • The Independent on Sunday: Tesco has taken the "unprecedented" step of shelving advanced plans to open UK stores, as the grocery giant focuses on improving its estate and opening smaller stores.
  • The Independent on Sunday: Aviva is much closer to securing the sale of its underperforming businesses than investors realise, say leading City sources.
  • Mail on Sunday: A warning that Libor needed to be better regulated was given to the Government by the City watchdog nearly two years ago - but its advice was ignored and excluded from the Coalition's financial services legislation.

Share tips, comment and bids

  • The Sunday Telegraph: BAE Systems has emerged as the frontrunner to provide the United States Air Force with a new training jet; the contract is estimated to be worth more than $11 billion.
  • The Sunday Telegraph: LivingSocial, the daily deals website, is likely to make its market debut on Nasdaq next year, according to its UK head.
  • The Sunday Telegraph: Luxury designer Valentino, famous for its opulent red ball gowns, is being sold to a sovereign wealth fund by Permira for €600 million.
  • The Sunday Telegraph (Comment): Shares are cheap, but don’t bank on the disconnect between market and economy holding for the rest of the year.
  • The Sunday Telegraph (Comment): What should be a sober business process – the ending of a CEO’s tenure – has turned into a piece of political theatre.
  • The Observer: The Bank of England deputy governor's appearance before the Treasury select committee's inquiry into the Barclays Libor scandal is vital to his job prospects.
  • The Observer: GlaxoSmithKline's $3 billion fine for mis-selling drugs in the US is the biggest ever handed down, but analysts say it is a drop in the ocean compared with the profits from medicines.
  • The Independent on Sunday: Scientists say they can prove too much power can affect the brain. The FSA's handling of Barclays may be further evidence.
  • Mail on Sunday (Comment): Marcus Agius must act swiftly. With customer defections now a real possibility, with shareholders spitting blood and with Barclays’ credit rating under threat, the leadership needs to be stabilised – and fast.

5 comments so far. Why not have your say?

Keith Snell

Jul 08, 2012 at 11:05

It is about time that Barclays began to deal with their excessive payments to senior staff,It is also time the fraud squad carried an investigation to identify the staff involved other than diamond who was in charge at the time, the latest weak excuse being that the guilty have all changed their jobs, presumably even Barclays keep adequate staff records.

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colin grant

Jul 08, 2012 at 11:17

Asking him?? They should send him on his way empty handed. He has been receiving money for false pretences. He has just stated that the Libor scandal was an isolated incident. Really? How would he know? He didnt (supposedly) know about it, so how does he know what else has been going on? If he had spent less time counting his money and basking in undeserved glory maybe he would still be in a job. Why should he get anything when the share price is a fraction of what it was when he started there. Amazing how his "success" only appears to have affected his pocket and nobody elses.

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Jul 08, 2012 at 12:29

Completely agree with Colin Grant

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Jul 08, 2012 at 13:49

Diamond should get nothing. As an executive, he is deemed to know what goes on in the organisation he headed and is responsible as such. Not knowing is not an excuse. At best it is negligent and at worst it is criminal.

In my opinion organisations that are too big for the Executive and Chair to control should be broken up into smaller units.

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Rose G

Jul 09, 2012 at 09:53

Inspite of all the furore this latest scandal has invoked, how many CEOs will actually take a pay cut and give up their bonuses?

The financial crisis brought on by greed and short term profit culture has not changed one little bit - CEOs are still earning and taking home huge amounts of eye watering financial incentives for their reckless behaviour - there is no culture to actually manage and invest wisely, just humoungous gains for those who show little respect for their investors.

Come next week, next year, the banking industry (perhaps not the high street banks) will be behaving with machismo and bravado as ever. The kinds of people who work in the industry are not interested in morals, ethics or anything remotely what normal individuals are usually shaped by, these are robber barons who have been employed to rob people of their savings - they may work for big name banks, but are no better than the back room scam artists at work even as we speak.

Where on earth is the incentive to work to a high standard, when it is becoming increasingly clear that hard work has no value, just making ridiculous sales over the short term of products which would be considered of dubious character in any organisation, but the investment banks.

Since the financial crisis, it is high street banks that are closing - why not close down those investment banks which are found to be duping their customers/investors. It also does not say much about the intelligence of the investors, if they are not using their collective powers to reduce the earnings of the top 1% of those in the banking industry who it appears are collecting money from very unscrupoulous practice.

Only in England, land of the free, can criminals of this character walk free from the disastrous situation they leave behind, collecting their bonuses regardless of whether or not it is deserved.

As for Diamond, he has a very good ally in Osbourne who is on his way to Brussels to support banking practice in the UK - light regulation or lack of regulation together with government complicity has led us to this debacle, why on earth should we have any confidence that these robber barons will get their just rewards - its one rule for them, another for the ordinary taxpayer, who has to cope with austerity, while Fred & his pals have not had to give up their champagne lifestyles. As for Cable, he is voiceless as ever and even if anyone cares to listen to his bluster, the libdems are as craven and cowardly as any of the pirates at sea, who in the past our noble (?) kings and queens gave honours, titles, land and lifestyle - nothing has changed, and we would be foolish to believe it will.

Ten years from now, there will be stories of this nature and I will be less than happy but not surprised.

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