Bob Diamond (banker)

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Bob Diamond
Diamond at the 2012 World Economic Forum Annual Meeting, Davos, Switzerland[1][2][3]
Born
Robert Edward Diamond, Jr.

(1951-07-27) July 27, 1951 (age 72)[4][5]
Concord, Massachusetts[6]
NationalityAmerican[5][7]
British[5][7]
Alma materColby College (B.A., Economics)[8]
University of Connecticut (MBA)
OccupationBanker
Years active1980 – present
Employer(s)Morgan Stanley (1977-1992)
CS First Boston (1992-1996)
Barclays (1996-2012)[9]
SpouseJennifer[6][10]
ChildrenThree - Two sons and a daughter[6][10]

Robert Edward "Bob" Diamond, Jr. (born July 27, 1951)[4] is an American banker and former Group Chief Executive of the British bank, Barclays Plc.[13]

He was Chief Executive of Corporate & Investment Banking and Wealth Management, comprising Barclays Capital, Barclays Corporate and Barclays Bank. Diamond was Executive Director of the Boards of Barclays Plc and Barclays Bank Plc and had been a member of the second largest British-based banking group's Executive Committee from September 1997 until July 2012. He joined the firm in the summer of 1996.[14]

Bob Diamond was voted the 37th in the New Statesman’s annual survey of the world's 50 most influential figures Who Matter 2010.[15]

From October 1, 2010, Diamond became Deputy Group Chief Executive.[16] He succeeded John Varley as Group Chief Executive on January 1, 2011.[17]

Diamond resigned as chief executive of Barclays on July 3, 2012, following controversy over alleged fixing of Libor interest rates by traders employed by the bank.[18][19]

Early years and education

Bob Diamond was born in Concord, Massachusetts, on July 27, 1951.[4] One of nine children,[5] Diamond grew up in an American family of Irish-Catholic values.[20] His parents, Anne and Robert Edward Senior, were both teachers and second-generation Scottish and Irish immigrants.[21]

He finished his schooling from Concord-Carlisle High School in 1969 and in 1973, graduated in B.A., Economics with honours from Colby College, Maine. He was a member of the Phi Delta Theta fraternity at Colby.[22] He was awarded an MBA from the University of Connecticut Business School, graduating first in his class.[13]

Career

Early years and Morgan Stanley : 1976 to 1992

He began his career as a lecturer at the School of Business, University of Connecticut from 1976-1977.[14]

Diamond joined Morgan Stanley in 1977 and held several senior positions. He rose to the post of managing director and head of fixed income trading division.

CS First Boston : 1992 to 1996

Diamond joined CS First Boston in 1992. Based in Tokyo, he was Chairman, President and Chief Executive Officer of CS First Boston Pacific, responsible for Investment Banking, Equity, Fixed Income and Foreign Exchange for the Pacific region. Diamond was formerly Vice Chairman and Head of Global Fixed Income and Foreign Exchange. Based in New York, he was a member of the Executive Board and Operating Committee.

Barclays PLC : 1996 to 2012

Diamond joined Barclays on July 4, 1996 and resided on the companies Executive Committee from 1997.[23]

Diamond led the effort to purchase key assets of Lehman Brothers after its bankruptcy in September 2008, instantly giving Barclays a key foothold in investment banking.[24]

On January 1, 2011, Diamond succeeded John Varley after he stepped down as Group Chief Executive in 2011.[25]

Just 24 hours after the Chairman Marcus Agius announced his resignation,[26] Diamond resigned with immediate effect on July 3, 2012 following the LIBOR scandal.[27]

Controversies

For details of the main controversies related to Barclays bank and its conduct during Diamond's tenure, including accusations of money laundering, tax avoidance and Libor manipulation, please see the main Barclays PLC article.

During his tenure at Barclays, Diamond received criticism for his level of pay, his perceived lack of humility or modesty, and for being the bank's Chief Executive or otherwise seen as responsible, at the time a number of malpractices were identified within the bank. Ultimately it was the finding of money market rate manipulation in 2012 that was the direct trigger for his departure.

In 2010 Diamond was described as "the unacceptable face" of banking by the then business secretary Lord Mandelson citing Diamond's high level of pay (quoted as £63m) and lack of humility.[28][29] In early 2011, Barclays announced that Diamond would receive an annual bonus of £6.5 million in 2011, the largest of any CEO of a British bank.[30]

In June 2012 Barclays was fined £59.5 million by the FSA (£290 million in total) for "serious, widespread breaches of City rules relating to the Libor and Euribor rates".[31][32] The bank had been found to have lied, sometimes to make a profit, and other times to make the bank look more secure during the financial crisis.[33] The UK's Financial Services Authority (FSA), which levied a fine of £59.5 million (US$92.7 million), gave Barclays the biggest fine it had ever imposed in its history.[34] The FSA's director of enforcement described such behaviour as "completely unacceptable", adding "Libor is an incredibly important benchmark reference rate, and it is relied on for many, many hundreds of thousands of contracts all over the world."[33] Liberal Democrat politician Lord Oakeshott criticised Diamond, saying: "If he had any shame he would go. If the Barclays board has any backbone, they'll sack him."[33] The U.S. Department of Justice had also been involved in the investigation.[33] Diamond announced on June 29 2012 that he would not resign over the bank's role in the fraud.[35] Diamond voluntarily gave up his bonus for 2012 after this was reported but stated he would not step down. However, following widespread anger at his refusal to step down and amidst concerns that his presence could be harmful to the Barclays brand, he resigned on July 3, 2012 from the post of Chief Executive Officer.[36]

Personal life

Diamond married his wife Jennifer, an engineer from Michigan, in 1983.[37] They have three children. He is an avid sports fan, supporting the Red Sox in Baseball, Chelsea F.C. in soccer, the New England Patriots in American football, and the Boston Celtics in Basketball. Diamond is a Republican[38] and an advisor to Conservative Mayor of London Boris Johnson.[39]

Diamond is Chairman of the Board of Trustees of Colby College in Waterville, Maine; Chairman of Old Vic Productions Plc; Trustee of The Mayor’s Fund for London; Member of the Advisory Board, Judge Business School at Cambridge University; Member of International Advisory Board, British-American Business Council; Life Member of the Council on Foreign Relations; and Member of the Atlantic Council.[14]

References

  1. ^ "Davos 2012: Day two, as it happened". Guardian. January 26, 2012. Retrieved April 17, 2012.
  2. ^ "Bob Diamond during the session 'Building Trust' at the World Economic Forum Annual Meeting, January 27, 2012, Davos, Switzerland". World Economic Forum. Retrieved April 17, 2012.
  3. ^ "Executive profile - Bob Diamond, World Economic Forum Annual Meeting 2012". World Economic Forum. Retrieved April 17, 2012.
  4. ^ a b c "MPs grill Barclays boss". Daily Mail. January 12, 2011. Retrieved April 17, 2012.
  5. ^ a b c d "Big hitter - Bob Diamond, chief executive, Barclays Capital". Guardian. August 6, 2005. Retrieved April 17, 2012.
  6. ^ a b c "Who is Bob Diamond? A quick CV". thisismoney.co.uk. September 8, 2008. Retrieved April 17, 2012.
  7. ^ a b "Barclays boss reveals 'no jerks' rule". Guardian. December 30, 2011. Retrieved April 17, 2012.
  8. ^ "Bob Diamond named CEO of Barclays". Guardian. September 7, 2012. Retrieved April 17, 2012.
  9. ^ http://www.newsroom.barclays.com/Press-releases/Board-changes-907.aspx
  10. ^ a b "City limits". Guardian. February 16, 2008. Retrieved April 17, 2012.
  11. ^ "Row grows over Bob Diamond's pay package as Barclays admits it will pay his U.S. tax bill for good". thisismoney.co.uk. April 12, 2012. Retrieved April 17, 2012.
  12. ^ "Paying Bob Diamond's tax bill proves very expensive for Barclays". Guardian. April 12, 2012. Retrieved April 17, 2012.
  13. ^ a b "Barclays Bank Plc , Executive profile - Robert E. Diamond". Barclays. Retrieved April 18, 2012.
  14. ^ a b c [1][dead link]
  15. ^ "37. Bob Diamond - 50 People Who Matter 2010". New Statesman. Retrieved October 11, 2010.
  16. ^ "John Varley to step down as Group Chief Executive to be succeeded by Robert E Diamond Jr". Newsroom.barclays.com. Retrieved June 28, 2012.
  17. ^ Wilson, Harry (December 17, 2010). "Bob Diamond takes over as Barclays chief executive early". The Daily Telegraph. London.
  18. ^ "Barclays boss Bob Diamond resigns amid Libor scandal". BBC News. London. July 3, 2012.
  19. ^ "Bob Diamond resigns from Barclays: the full statement". The Daily Telegraph. London. July 3, 2012.
  20. ^ "The Deal of the Century". esquire.com. September 11, 2009. Retrieved April 18, 2012.
  21. ^ "Bob Diamond on his job: Stressful? I begin each day by smiling". Mirror.co.uk. September 8, 2010. Retrieved April 18, 2012.
  22. ^ "Diamond Parries Attacks on Pay With Vow to Earn Public Trust". Bloomberg. December 1, 2010. Retrieved April 18, 2012.
  23. ^ http://group.barclays.com/about-barclays/about-us/bob-diamond
  24. ^ Sherman, Gabriel (September 21, 2008). "How a Lehman Trader Copes With Income Shrinkage". New York Magazine. Retrieved June 28, 2012.
  25. ^ http://www.newsroom.barclays.com/Press-releases/Date-of-CEO-succession-brought-forward-742.aspx
  26. ^ http://www.newsroom.barclays.com/Press-releases/Board-changes-905.aspx
  27. ^ http://www.newsroom.barclays.com/Press-releases/Board-changes-907.aspx
  28. ^ http://news.sky.com/story/771318/mandelson-attacks-bank-boss-for-63m-salary
  29. ^ Barclays boss Bob Diamond resigns amid Libor scandal
  30. ^ "Barclays CEO Robert Diamond Awarded $10.6 Million Bonus". Huffingtonpost.com. Retrieved June 28, 2012.
  31. ^ Treanor, Jill (June 27, 2012). "Barclays chief Bob Diamond gives up 2012 bonus over £290m fine". The Guardian. Retrieved June 27, 2012.
  32. ^ "Barclays to pay over 450 million dollars to settle charges regarding LIBOR". Xinhua. June 27, 2012. Retrieved June 27, 2012.
  33. ^ a b c d "Barclays fined for attempts to manipulate Libor rates". BBC News. BBC. June 27, 2012. Retrieved June 27, 2012.
  34. ^ "Barclays to pay largest civil fine in CFTC history". CBS News. June 27, 2012. Retrieved June 27, 2012.
  35. ^ "Barclays boss Bob Diamond says he will not resign". BBC News. BBC. June 29, 2012. Retrieved June 29, 2012.
  36. ^ "Bob Diamond". July 4, 2012.
  37. ^ Duncan, Hugo. "Backlash over Barclays' £70m man: Five-year package means the new chief could make a fortune (again)". Daily Mail. London.
  38. ^ Mychasuk, Emiliya (June 19, 2008). "Diamond drives the McCain bus". FT.com. Retrieved June 28, 2012.
  39. ^ Walsh, Dominic (April 19, 2008). "Boris Johnson says Bob Diamond is a Mayors best friend". The Times. London.

External links

Business positions
Preceded by Group Chief Executive of Barclays plc
Jan 1, 2011 – July 3, 2012 		Succeeded by
TBD

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