Diamond’s lack of contrition could be fatal

Declining to offer an apology or take responsibility for the scandal at Barclays will not play well with politicians.

David Cameron has said that accountability for the rate-fixing at Barclays has to go “to the very top”. George Osborne called what happened "completely unacceptable" and "symptomatic of a financial system that elevated greed above all". Vince Cable said that Diamond could be prevented from running a company in the future, saying that “There are last resort powers of director disqualification – that is certainly a sanction open to us.” Ed Miliband has called for a criminal investigation.

However, despite the political pressure piling up on him and his company, Barclays chief Bob Diamond has yet to offer any sort of apology. In a letter to Andrew Tyrie, the chair of the Treasury Select Committee, he says:

Barclays traders attempted to influence the bank’s submissions in order to try to benefit their own desks’ trading position. This is, of course, wholly inappropriate behaviour… This inappropriate conduct was limited to a small number of people relative to the size of Barclays trading operations, and the authorities found no evidence that anyone more senior than the immediate desk supervisors was aware of the requests by traders, at the time that they were made. Nonetheless, it is clear that the control systems in place at the time were not strong enough and should have been much better.

Later in the letter (read it in full here) he addresses the accusations of Libor rate-setting, and admits:

Even taking account of the abnormal market conditions at the height of the financial crisis, and that the motivation was to protect the bank, not to influence the ultimate rate, I accept that the decision to lower submissions was wrong.

Neither of these “admissions” comes anywhere near to being an apology, either for the actions of the bank he leads, or for the impact it has had on small business and households. The wording also subtly denies any direct responsibility for Diamond – a “wrong” decision was clearly made, but he doesn’t offer any ideas as to who made it. Stating that the “inappropriate conduct” was limited to a small group of traders also reinforces this position – it strongly recalls the “rogue reporter” claims we’re so familiar with from the phone-hacking scandal, and comes across as an attempt to prevent the blame reaching Diamond and others in the upper echelons of the company.

Diamond will appear before the Treasury Select Committee in the near future, and no doubt Tyrie and his colleagues will take him severely to task over the detail of precisely what happened and who knew what when. But for today, with senior politicians condemning him and pledging to ensure complete accountability, declining even to offer a simple apology for what was clearly a catastrophic series of errors, has just made things a whole lot worse for Bob Diamond.

 

Bob Diamond addressing the CBI conference in 2010. Photograph: Getty Images

Caroline Crampton is assistant editor of the New Statesman. She writes a weekly podcast column.

Photo: Getty
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As crime moves online, the police need the investment in technology to follow

Technology offers solutions, not just threats.

It’s perhaps inevitable that as the world becomes more digital, so does crime. This week Alison Saunders, director of public prosecutions, recognised that online crime is as serious as face-to-face crime. “Hate is hate,” Saunders wrote referring to internet abuse, and the police should protect people from it wherever they are. This will add demand to under-pressure police forces. And it is only the tip of the iceberg. 

Forty-seven per cent of crime involves an online element. Police recorded 30,000 instances of online stalking and harassment last year. People are 20 times more likely to be a victim of fraud than robbery, costing businesses an estimated £144bn a year. On a conservative estimate, 2,500 UK citizens use the anonymous dark web browser, Tor, for illegal purposes such as drug dealing, revenge porn and child sexual exploitation.

The police need new technology to meet demand, a Reform report published today finds. Some progress has been made in recent years. West Midlands Police uses an online portal for people to report incidents. Durham uses evidence-gathering software to collect social media information on suspects, and then instantly compile a report that can be shared with courts. Police have benefited from smartphones to share information, and body-worn cameras, which have reduced complaints against police by 93 per cent.

Yet, Theresa May’s 2016 remarks that police use “technology that lags woefully behind what they use as consumers” still stand. Officers interviewed for Reform’s research implored: “Give us the tools to do our job”.

Online evidence portals should be upgraded to accept CCTV footage. Apps should be developed to allow officers to learn about new digital threats, following the US army’s library of knowledge-sharing apps. Augmented-reality glasses are being used in the Netherlands to help officers identify evidence at digital crime scenes. Officers would save a trip back to the station if they could collect fingerprints on smartphones and statements on body-worn cameras.

New technology requires investment, but forces are reducing the resources put into IT as reserves have dried up. Durham plans to cut spend by 60 per cent between 2015-16 and 2019-20. The government should help fund equipment which can meet demand and return future productivity savings. If the Home Office invested the same as the Department of Health, another department pushing “transformative” technology, it would invest an extra £450m a year. This funding should come from administrative savings delivered through accelerating the Government’s automation agenda, which the think tank Reform has previously calculated would save Whitehall £2.6bn a year.

As crime moves online, police must follow. Saunders is right to point to the importance of meeting it. But technology offers solutions, not just threats. Installing the next generation of equipment will give police the tools to do their jobs, addressing online hate and more. 

Alexander Hitchcock is a senior researcher at reform