Barclays ‘warned about appointing Bob Diamond in 2010′
City Index September 20, 2012 1:21 PM
<p>The FSA has revealed it warned Barclays that Bob Diamond may not be suitable for the role as chief executive in 2010.</p>
The Financial Services Authority (FSA) has revealed it warned Barclays Bank that Bob Diamond may not be suitable for the role of chief executive two years ago.
Newly-published documents show the regulator felt its Libor rate fixing investigation may affect the appointment and reserved its right to "reassess" Mr Diamond's role within the company.
Released by the Commons' Treasury Committee, the letters come after the former employee resigned in July over claims the bank's traders tried to rig Libor.
An FSA note revealed there was a meeting between its chief Hector Sants and Barclays' then-chairman Marcus Agius on September 15th 2010.
During the consultation, the watchdog claims it told Mr Agius the continuing investigation could have an impact on the financier's decision to appoint Mr Diamond.
In a letter to committee chairman Andrew Tyrie on August 20th 2012, Mr Sants said: "The FSA was fully aware that the ongoing investigation might come to conclusions which would be relevant to Mr Diamond's suitability."
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