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Bank President Resigns Over Rate-Fixing Scandal

Jul 07 2012

English: Marcus Agius, British financier and b...

English: Marcus Agius, British financier and businessman and Chairman of Barclays, speaking at the Confederation of British Industry's Climate Change Summit 2008 at The Royal Lancaster Hotel, London. (Photo credit: Wikipedia)

Barclay bank president resigns according to news sources. A CEO of one of the biggest banks has stepped down because of a scandal the bank reported on Tuesday. The resignation of Bob Diamond goes into effect right away.

This comes as no surprise since Diamond has always been viewed a very controversial figure in support of giving bankers large bonuses.

Diamond stated to CNN it is about getting paid per performance referring to bonuses as a reward for achievements.

After the bank president resigns, Jerry del Missier also resigned following Diamond. On Monday, Marcus Agius stepped down as chairman but claimed his position as chief executive on Tuesday.

The main cause of the Diamond decline was Libor which allows banks to loan one another money.

This can have an impact on the amount of interest the average banker pays on debit cards, loans, and mortgages.

Ralph SIlva' who had been an investment banker,says that is the main reason behind the anger. If Libor is manipulated,it means money is coming out of the billfolds of the public because of rising mortgage rates This can effect the amount of pension they get.

Several other banks are also being investigated because of rate-fixing. Though the banks have not been identified, Credit Suissee, J.P. Morgan, Citigroup, and Royal Bank of Scotland admitted they are under investigation. The Bank of America declines to say if they are under an investigation. Barclay has been fined $450 million for their part in rate-fixing. Diamond has a hearing scheduled before Parliament Treasury Committee on Wednesday.

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