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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Brexit could destroy our NHS – and it would be the government's own fault

Without EU citizens, the health service will be short of 20,000 nurses in a decade.

Aneurin Bevan once said: "Illness is neither an indulgence for which people have to pay, nor an offence for which they should be penalised, but a misfortune, the cost of which should be shared by the community."

And so, in 1948, the National Health Service was established. But today, the service itself seems to be on life support and stumbling towards a final and fatal collapse.

It is no secret that for years the NHS has been neglected and underfunded by the government. But Brexit is doing the NHS no favours either.

In addition to the promise of £350m to our NHS every week, Brexit campaigners shamefully portrayed immigrants, in many ways, as as a burden. This is quite simply not the case, as statistics have shown how Britain has benefited quite significantly from mass EU migration. The NHS, again, profited from large swathes of European recruitment.

We are already suffering an overwhelming downturn in staffing applications from EU/EAA countries due to the uncertainty that Brexit is already causing. If the migration of nurses from EEA countries stopped completely, the Department of Health predicts the UK would have a shortage of 20,000 nurses by 2025/26. Some hospitals have significantly larger numbers of EU workers than others, such as Royal Brompton in London, where one in five workers is from the EU/EAA. How will this be accounted for? 

Britain’s solid pharmaceutical industry – which plays an integral part in the NHS and our everyday lives – is also at risk from Brexit.

London is the current home of the highly prized EU regulatory body, the European Medicine Agency, which was won by John Major in 1994 after the ratification of the Maastricht Treaty.

The EMA is tasked with ensuring that all medicines available on the EU market are safe, effective and of high quality. The UK’s relationship with the EMA is unquestionably vital to the functioning of the NHS.

As well as delivering 900 highly skilled jobs of its own, the EMA is associated with 1,299 QPPV’s (qualified person for pharmacovigilance). Various subcontractors, research organisations and drug companies have settled in London to be close to the regulatory process.

The government may not be able to prevent the removal of the EMA, but it is entirely in its power to retain EU medical staff. 

Yet Theresa May has failed to reassure EU citizens, with her offer to them falling short of continuation of rights. Is it any wonder that 47 per cent of highly skilled workers from the EU are considering leaving the UK in the next five years?

During the election, May failed to declare how she plans to increase the number of future homegrown nurses or how she will protect our current brilliant crop of European nurses – amounting to around 30,000 roles.

A compromise in the form of an EFTA arrangement would lessen the damage Brexit is going to cause to every single facet of our NHS. Yet the government's rhetoric going into the election was "no deal is better than a bad deal". 

Whatever is negotiated with the EU over the coming years, the NHS faces an uncertain and perilous future. The government needs to act now, before the larger inevitable disruptions of Brexit kick in, if it is to restore stability and efficiency to the health service.

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