11 Jul 2012

Bonus foregone by departing banker

12:00 pm on 11 July 2012

Former Barclays chief executive Bob Diamond has given up his £20 million bonus after quitting over the Libor rate scandal, but will still receive up to £2 million in salary and benefits.

The BBC reports details were revealed on Tuesday by outgoing chairman Marcus Aigus at a parliamentary inquiry into the rate fixing.

Mr Agius said he was summoned to a meeting with Bank of England Governor Mervyn King on the evening of Monday 2 July, the day he resigned, where he was told in no uncertain terms that the regulators had lost confidence in Mr Diamond.

Mr Agius then visited Mr Diamond at his family home to relay this message. The next morning, Mr Diamond resigned.

He said Mr Diamond had given up the bonus voluntarily.

Barclays has been fined £290 million by the Financial Services Authority for fixing Libor as far back as 2005.

But it's now believed at least 20 banks on both sides of the Atlantic were involved in the Libor rate manipulation which took place during the 2008 financial crisis.

Questions are being asked in the United States about who knew what and if anything could have been done sooner to prevent the illegal activity.