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King remains tight-lipped over role in Diamond exit
by Sarah Miloudi on Jul 10, 2012 at 15:15
Mervyn King has remained tight-lipped over the role he played in the resignation of Bob Diamond.
'I'm not going to comment on individuals,' the Bank of England governor said in an interview with BBC Radio 4 today. 'One of the roles of the governor is to have conversations that remain private.'
His comments came as outgoing Barclays chair Marcus Agius told politicians King (pictured) had played a decisive role in the departure of Diamond last week.
In a grilling by the Treasury Select Committee Agius claimed King called a meeting of the Barclays senior directors, during which it warned that Diamond no longer had the support of regulators.
Agius also said the bank was warned about the public's perception of its use of complex tax rules and that its relationship with the Financial Services Authority (FSA) had become 'strained'. 'We are moving heaven and earth to put things right,' Agius said.
Towards the start of the session, which kicked off at 10am, Agius revealed Diamond has agreed to give up his deferred bonuses, worth around £20 million.
While it is no secret that other lenders are involved, TSC chair Andrew Tyrie said he was deeply concerned about the extent of Libor manipulation. He said: 'I dread to think what's going to happen when we get the rest of the reports from regulators.'
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