Also in this playlist...
This transcript is automatically generated
Well it's a revolving door for the top executives -- the UK's third largest bank Barkley CEO Bob Diamond and his chief operating officer who was following the bank's chairman out the door.
-- pressure is mounting on Barclays after it admitted to manipulating interest rates let's bring in Christopher Wheeler.
Banking analyst at medio -- -- and and Christopher first of all nothing dies down with the stepping down of Bob Diamond which some -- argue was really not necessary look at the chairman already stepped down.
But now the entire head has been cut -- Barclays and as they search for a new CEO the question becomes.
What happens next -- park police and does this situation spread to other banks as there are investigations now.
Yes well can often and I think -- a -- -- -- on his resignation was something of a shock this morning because I think we sold to some Illinois has died down allowed to allow bulk following the chairman's resignation as you rightly pointed out.
But obviously they're now looking for new CEO.
I think that this is going to be quite a tough job to fill because while the board can -- explicit support for the new incumbent.
-- should -- to give some kind of supporting sums of and you're saying that they don't have any kind of government interference because clearly what happened to Bob Diamond today.
Was partly driven by the the political lobbying that -- -- a cultural policies.
And that's a -- uncomfortable think the new CEO to think he might have to deal with when he comes in.
Will there be a change of strategy lot of people upset so I don't think so it's ghostly world class business c.'s investment banking UK retail banking the cult business.
It's doing exactly couldn't go wealth management businesses so I think he's gonna table for the same -- -- -- getting somebody will be tough.
But the final point you raised his perhaps most important we know that fifteen other banks being investigated.
Have boosted -- -- here.
But it goes out of banks reduce -- agreement with fewer facilities to say yes we did discover someone actually does actually have been dabbling in in if you want influencing libel.
Then -- -- -- of daily really hot -- nine -- -- cannot I think that's of great concern if we see militancy bankers.
-- having to leave the initially.
Money at a time when we can least afford that.
Christopher we wanna get those names before you go but -- An overall point about about the banking sector because London is such an important sector.
In the worldwide banking market is Britain going to come out with a whole new set of regulation sort of similar to what happened -- Dodd -- here in the United States.
Look -- -- I'm I'm treating Iliad was saddened by the fact of the opposition party calling for banking quietly.
Which could be -- expensive -- -- -- -- let's be honest here we know exactly what went wrong you sound like you've been as close some of the bull market side being -- Up the -- is bull market's recent that we see some village back -- -- -- we -- some particularly bad -- this time allowed.
That has been a massive regulation put in place on -- -- Swain that he -- certain compensations.
That liquidity capital to plus -- We put -- on -- you like those banks and would you like them softly now we're gonna stop looking backwards and and as -- scan and a few -- we go to go to bets of placing some of the banks except.
Column when we're gonna have a low -- but hopefully a lot more confidence in those banks.
Well we're Christopher it's important for British regulators and who are we to say but but to be careful what you wish for because Bob Diamond -- had been a pro regulation when it came to be really kind of -- about it.
Here's what he said to Fox Business just a few years ago in an interview he did with me.
-- -- -- -- About poor risk management and poor management of financial institutions and those financial institutions that -- -- -- because of just what you said.
Strong banks one strong regulation we encourage strong regulation and were all better off if we have strong regulation.
So what traders weighed down on the food chain.
Forced his demise you are saying that it'll be tough to replace somebody like Bob -- international leader of a bank which I'm sure many people in parliament there invest in or at least have their money went so.
Now what happens at do you think they'll take regulation to the level that becomes negative for the -- I'm not that I just -- I think most of regulations in place the next big move visual fully aware as we went to a -- the ludicrous system of slight pulse -- legislation.
The precise the government and the bank commitments we going back so while blinking lights -- you know -- welcome that you'll see some might see the ice team balkanization got into the bank coming with the chairman in the eighties.
And yet he was always -- the -- -- to see the Bank of England passed away in a week should be and I like to think we put in place the regulation that could -- that's happen again.
But we going to allow that to get all.
And we got to stop this here.
Populist politics that we have idea of of going on and on that you -- Libor -- supporting there's no doubt about it.
But again it's a sick there was a lot of bad -- -- chilling that -- a reasonable market but we have sought to put in place.
The changes that will now would you -- the banks and of course the management's.
Have to also manage their -- much more tightly.
Well populist politics is kind of a redundancy particularly here in the United States -- election I'm sure it's the same -- -- right now but if -- it does there is a big question hanging out there and and I want you to focus on some names that have been mentioned but if Barclays was doing it.
The question is who else was doing the same sort of thing was there any kind of collusion.
Among among banks SV are these questions going to be answering -- -- name some of the banks that are that are being questioned now.
Yes I mean he's insisting we have -- please just -- -- because booked on the board gave evidence to mullet social actually -- -- On having just -- those tightness in the -- -- in here.
It's really clear a lot of the -- submissions that were deemed whole life.
We're at a time when they think I'm joined the crises the some of the competitors -- globally the number.
Tonight utilities think that while we complacent know we can -- liquidity in these difficult markets and get -- some questions about exactly what did happen around this -- but in terms of as being investigated we know banks such as JPMorgan.
Deutsche Bank -- -- -- -- The Swiss -- UBS Credit Suisse Lloyds bank -- little Bank of Scotland -- these banks being investigated.
And clearly -- he's got to know -- -- -- settlement is spent to how the million pounds he says in.
Working with the like you liked is in the United States in the -- -- on this out of course the actually got some quite nicely mint.
It has got leniency from the US Department of Justice on antitrust cases in respect of any deals -- to -- local.
I -- I felt that they been awarded the coming -- early as I said in a note this morning bagel person who's disadvantage.
Because -- -- -- in the flying so ordered its banks I mentioned army and all in the -- about what they if you -- for example to JPMorgan wrote Deutsche Bank all the Credit Suisse although Bank of Canada a little so obvious settle with the U facilities I don't know yet in the she's just allegations of the moment then.
Do we have schools for their CEOs -- and I I hope not.
Christopher Wheeler what a pleasure to have -- Christopher thank you for your excellent information every.
Filter by section