Member Article

Del Missier contradicts Diamond, but why?

Del Missier and Diamond begin to contradict each other.

Jerry del Missier appeared to contradict the evidence of his former boss Bob Diamond on Monday when he told MPs that he “passed instructions along” to take actions that would lower the bank’s submission to the Libor rate-setting panel.

Mr del Missier told the House of Commons Treasury Committee that he believed he was doing what Mr Diamond wanted after they spoke about a conversation the chief executive had with Paul Tucker, deputy governor of the Bank, in October 2008. This is absolutely diametrically different to Bob Diamond’s statements.

Mr del Missier said he only acted as he did as a result of his belief that it was proper to do so because he was following the Bank’s wishes.

Mr Diamond told MPs earlier this month that there had been no instruction from the Bank nor was one passed on to Mr del Missier, while the latter said in his own testimony: “It was an instruction, yes.”

He denied that at the time of submitting lowered Libor submissions, he thought that it was improper and resisted suggestions by MPs that it was also illegal. But he said that he was not now prepared to disagree with the US justice department that the activity was “improper”.

What is happening here? Well, it would appear that the most senior people in Barclays did not know what their staff were doing, didn’t communicate effectively with each other, and were not in proper control of their traders. Well, that is what they want us to believe because these shortcomings, no matter how bad, are not illegal.

My view is that del Missier can see potential formal legal action coming his way from across the Atlantic, which could result in a long jail sentence, and he is trying to build his defence accordingly. Certainly having ‘broken ranks’ today he has chosen a strategy that he will not easily be able to unwind.

It will be interesting to hear what Bob Diamond says when he is inevitably recalled to answer this contradiction.

Phil Dibbs

Managing Director

Hawkmoor Associates Limited

www.hawkmoorassociates.com

phil@hawkmoorassociates.com

www.twitter.com @hawkmoortweets

This was posted in Bdaily's Members' News section by Phil Dibbs .