Former Barclays chief executive Bob Diamond has denied claims the FSA expressed a lack of confidence in the bank’s senior executive team earlier this year but admits the regulator had concerns about “culture issues” further down its management structure.
In a Treasury select committee evidence session today, TSC chairman Andrew Tyrie asked Diamond if it is true the FSA told the bank’s’ board in February that trust between the two parties had broken down and it no longer had faith in its executive team. Tyrie also asked if a letter existed stating these concerns but Diamond denied its existence.
Responding to the claims the regulator had lost confidence in Barclays’ executive team, Diamond replied: “No, Sir”.
Asked about what was discussed in the meeting in February, Diamond said: “There was a discussion that as you got down into the organisation they felt that there were some culture issues, that people sometimes pushed back and that the push back was not always filtered back to the top.
“It was part of an annual review so there will always be things they will be critical of and think we can do better. But they were specifically pleased, and said so to the board, with the tone at the top, referring in particular to [finance director] Chris Lucas and myself and my colleagues on the executive committee.”
Barclays chairman Marcus Agius resigned last week but has decided to stay at the bank until a new chief executive is appointed.