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Diamond: banks can’t be prevented from failing
by Elsa Buchanan on Sep 27, 2013 at 13:27
Former Barclays CEO Bob Diamond told CNBC that banks cannot be prevented from failing and they need to take risks in order to drive the economy and create jobs.
However, he insisted, the ‘toolkit’ to end the risk of taxpayer bailouts of financial institutions on both sides of the Atlantic is available, and that UK and US banks are now stronger that they were pre-2008.
‘I don't think what we're trying to do is say, "banks can't fail",'’ Diamond (pictured) said. ‘I think we want to be comfortable that if a bank does fail or if a bank does get into trouble it doesn't create systemic risk and it's not a burden on the taxpayers.’
Diamond (pictured) resigned from Barclays last July following the scandal surrounding the bank's manipulation of the London Interbank Offered Rate (Libor).
Barclays was fined $442 million (£274.8 million) by the authorities for its role in the practics.
During the interview with the broadcaster, Diamond reflected: ‘You had a situation at Barclays last summer, where the strategy was from the board to settle quickly, settle early, settle with the support of the regulators.’
‘When looking back, which is important to do from time to time, that was a very difficult period for me. It was a very difficult time for Barclays. It was a difficult period for banks. It was a difficult period for the UK.’
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