Friday 29 June 2012 evening standard evening standard Friday 29 June 2012 

Like us on Facebook Follow us on Twitter News facebook.com/eveningstandard @standardnews News The time for remorse is now as Diamond is told to apologise

Joe Murphy and simon english public are, or the sense of betrayal boss warned to be humble they feel.” BOB DIAMOND will be told to give a City fund managers today warned ‘We were promised safe loan, but we contrite apology for the rate-rigging when he faces Treasury committee that it was impossible for them to buy scandal when he appears before a com- shares in Barclays until Mr Diamond mittee of MPs next week. of the powerful Treasury Select Com- former head of corporate governance resigns. became beggars to meet payments’ The Barclays chief executive, who was mittee will make him eat his words at Invesco Perpetual, said: “He is going With pressure on the and its paid £18 million last year, was accused when he comes before them again to to have to apologise for what has been board rising in the wake of this week’s to pass on to her daughters to be £150,000. Barclays also of arrogance 18 months ago when he be questioned about the disclosure that despicable and completely unaccept- interest rate fixing scandal, even fans CASE STUDY and sons. My nan passed the tried to auction our building brazenly told MPs that the “period of Barclays staff fixed the interbank lend- able behaviour at his bank. of Mr Diamond said that the issue Mark Blunden jewellery on to my mum and I without us even knowing remorse” for the banking industry ing rate to make millions. “I do not think the really would keep hitting the stock, damaging cried the day she had to sell. about it. I haven’t slept a should come to an end. Now members Conservative MP , a appreciate how shocked and angry the investors including pension funds. A BUSINESSWOMAN today Mum has nothing left.” wink since the interest rates Asked if he should resign, Mrs Lead- claimed her family had to sell Ms Bashir claimed that went down and every time som said: “He has got a lot to answer their late grandmother’s gold when the family tried to the payment came up we had for. He is going to have to work very after Barclays Bank mis-sold break out of the agreement in to rush my dad to hospital hard to convince members that he is them a loan product. 2008, Barclays told them it with angina pain. I should be not at fault.” Waheeda Bashir, who runs a would cost them about benefiting but Barclays are She said it was extraordinary that Mr halal meat business in Ilford, £600,000, plus the crippling me. It feels like I’ve Diamond claimed to have had no idea said she was left devastated £1.4 million loan. She is got a rope around my neck.” what was going on: “Why is a man paid when the bank tried to wind up fighting the bank through Barclays said: “We cannot so much money to oversee internal their firm. City-based lawyers Lexlaw, comment on a matter which procedures yet did not consider this Her Superfresh Halal company and last week met other is currently in litigation save could happen? Why did the bank not took out a £1.25 million 25-year alleged hedging victims at a “Crippling to confirm that we deny the have effective internal procedures?” loan in 2006, increasing to debate in the Commons. loan”: allegations made to date and MP Pat McFadden, a Labour commit- £1.4 million in 2007, to expand. She said: “Our turnover is Waheeda will be defending the legal tee member and former minister, said Ms Bashir was sold two hedging now £70,000 a year, it used Bashir action.” Mr Diamond had to name exactly who protection loans which Barclays knew and when: “And if he did not said were free and would protect know, the question he must answer is her from rising rates, she claimed. why not? Her monthly repayments were “He has got to acknowledge too that just under £8,000. BANKRUPTCY AUCTION his statement last year that it was time “Barclays Corporate said it DUE TO LIQUIDATION, INSOLVENCY, COMPANY CESSATION for banks to stop apologising was would protect us when interest NO RESERVE PRICES. NO BID REFUSED wrong and that it is now time for not rates go up and it was a condition GOVERMENT BONDED WAREHOUSE No-1621645 only some humility but a complete of the loan that we had to take culture change at the banks.” this product out,” she said. WORLD CLASS VINTAGE WINE In January last year, Mr Diamond told “He told us it was free and very 250 LOTS FROM 1930’S TO CURRENT DAY beneficial, but there was no PAUILLAC, MARGAUX, ST JULIEN, ST EMILION POMEROL, the committee: “There was a period of MEDOC, GRAVES, VARIOUS ROTHSCHILD remorse and apology for banks and I choice. I thought they would CHATEAU NEUF DU PAPE, GEVREY CHAMBERTIN think that period needs to be over. We protect us and we wouldn’t have NUIT ST GEORGE, CHABLIS, POUILLY FUISSE need our banks (to be) willing to take to worry. BORDEAUX AND BURGUNDY, VINTAGE CRISTAL DOM risks ... so we can create jobs.” “In 2008 when the interest rate PERIGNON, BOLLINGER, RARE MALT WHISKY On Wednesday night, as the dropped my mortgage stayed at fixing scandal broke, he showed some £7,926, but every third month I PHONE 4S, I MACS - £50 humility by foregoing a bonus and say- they wanted just under £20,000. MACBOOKS, I PAD3 - £40 ing: “I am sorry that some people acted We became beggars to keep up SONY, TOSHIBA, DELL LAPTOPS - £50 in a manner not consistent with our with the payments. We sold all my NEW 50”, 40’’, 3D SAMSUNG, SONY, LG TVS - £100 culture and values.” mum’s gold and my sister-in law’s Last night, Mr Diamond sent a letter wedding jewellery she had hoped ROLEX, HUBLOT, BREITLING to committee chairman Andrew Tyrie Facing the music: Barclays chief executive Bob Diamond is under pressure from City fund managers to resign PATEK PHILIPPEE, FRANCK MULLER, OMEGA that insisted “this inappropriate con- CARTIER, BVLGARI, IWC, TAG HEUER duct was limited to a small number of own chairman Diamond should go tives knew and when they knew it. vately, said: “In an age of scrutiny, fund managers who don’t own Bar- BOXED PAPERED AND GUARANTEED people relative to the size of Barclays” himself. Only by changing the endemic Barclays shares have halved in the the ugly truth is emerging of just how clays because they don’t think that INVESTMENT PAINTINGS — but admitted “control systems in ‘abuse the customer’ culture embodied past two years from around 330p to callous and manipulated the markets banks should be run by optimists at ALFRED DE BREANSKI, ROBERT CLEMINSON place at the time were not strong at the very top of major banks will any- just 166p today and investors say that are. Diamond and his board are at the moment.” H MALFROY, W SHAYER, LOYS JOSEPH PRAT enough”. Mr Diamond has reportedly thing change.” with litigation looming they cannot the apex of this culture and should Campaigners are calling for a over- MICHEAL D’AGUILAR, GEOFFERY CHATTEN RBA said he will not quit. Jane Coffey, the head of equities at recommend buying the stock. all be held to account criminally for haul of the City’s “toxic culture”. Tony JOHN TRICKET, AG KURTIS, RAYMOND CAMPBELL There have been calls for Barclays Royal London, an insurer which man- Gary Greenwood at Shore Capital, their actions. A resignation is the Greenham, head of finance at the New EDWARD HERSEY, WENDY REEVES, DOMINGO chairman to carry the ages savings of £40 billion, said: “I in a note titled Banks Behaving Badly, very least we can expect.” Foundation, said: “The CELINE LUST, CHRISTOF MONNIN, KORDIAN can by stepping down. However, Alan would not be surprised if he goes over today advised clients to sell Barclays One bank analyst said: “Bob has danger is that Bob Diamond will CHRISTOF VEVERS, MOREL, MAFONSO Miller of SCM Private, one of the best- time. I would not expect him to resign shares. He said: “The threat of civil been far too optimistic throughout become a sacrificial lamb, with calls regarded fund managers in the City, this weekend.” litigation is the main risk to future the crisis, not just ‘the time for for his resignation overlooking the CERTIFICATED JEWELLERY said: “Instead of being tempted to do She added that there needs to be a bank share price performance.” remorse is over’ stuff last year, but urgent need to tackle the systemic SOLITAIRES, BRILLIANT, PRINCESS CUT the cowardly thing by sacrificing his further investigation into what execu- One stockbroker, speaking pri- also before then ... there are a lot of problems in the banking industry.” EMERALD, SAPPHIRE, RUBY, TANZANITE EARRINGS, PENDANTS, BRACELETS 125 LOTS MUST BE SOLD (REGARDLESS) MISCELLANEOUS Small businesses hit by new mis-selling scandal BRONZE SCULPTURES, SILVERWARE, POND YACHTS PORCELAIN, CHINA, GLASS, SAMURAI SWORDS Continued from Page 1 well. Martin Wheatley, managing direc- were driven by big cash incentives swap products we have agreed to rial”, adding: “Interest rate derivative TIFFANY & CRYSTAL LAMPS, SHIPPING MEMORABILIA tor of the FSA’s conduct business unit, — and some customers said they had move directly to redress. products are not products the group GILDED BRONZE FIGURINES, FRENCH INLAID FURNITURE “leadership of an unusually high order said: “For many small businesses this been “forced” by their banks to take “We believe risk management prod- has sold widely.” LIMITED EDITION LADIES HANDBAGS and changes to the structure of the has been a difficult and distressing them out as loan insurance ucts are an essential part of corporate Shadow business secretary Chuka industry” — an apparent criticism of experience, with many people’s liveli- The scandal echoes the payment banking and it is important we Umunna said the banks need to PERSIAN CARPETS AND RUGS Barclays boss Bob Diamond. hoods affected.” protection insurance furore that restore customer trust in this area.” explain who knew about the mis- ESTFAHAN, TABRIZ, QUM SILK, NAIN- 42 LOTS WILL BE SOLD However, he ruled out a Leveson- Mis-selling victims included farmers, emerged last year, costing banks bil- The British Bankers’ Association, selling of interest rate swaps. He said: style inquiry into the systemic failures small hotels and even chip shop owners lions of pounds in pay-outs. representing more than 200 banks, “With the catalogue of wrongdoing SUNDAY 1st JULY 2012 of the banking industry and its leader- and electrical stores — small high street As well as offering redress directly said: “Our members have worked growing, the banking sector urgently HILTON LONDON KENSINGTON ship, saying he and the regulators knew traders who had no idea what they for those customers who bought the closely with the FSA as it carries out needs to act to rebuild trust, demon- 179-199 HOLLAND PARK AVENUE, LONDON, W11 4UL what needed to be done. were getting into. All four main banks most complex products, the banks its review into interest rate swaps and strate it understands the huge damage DOORS OPEN 12.00 NOON Barclays was fined a record £290 mil- have agreed to pay out compensation, have also agreed to stop marketing will continue to co-operate fully.” to its reputation and show that where FREE ENTRANCE & REGISTRATION ON ARRIVAL lion for manipulating the Libor rate at said the FSA certain IRSA products to retail cus- Lloyds, which set aside £3.6 billion there has been wrongdoing it will which banks lend to each other. RBS is The banks sold about 28,000 such tomers, said the FSA. to cover the cost of PPI compensa- ensure people are held to account.” ENQUIRIES - 020 8338 8283 reported to be facing a £150 million products to customers since 2001, it RBS said: “In the case of a small tion, said it did not expect the costs PAYMENTS; ACCESS, VISA, MASTERCARD, SOLO, DELTA CARDS, AND CASH fine. Compensation for the mis-selling said. Victims were not told about hefty number of less sophisticated custom- of redressing customers who were editorial Comment Page 16 SATELLITE & PLAIN CLOTHES SECURITY, CCTV of interest swaps will now be paid as exit costs or the risks involved. Sales ers who entered into more complex mis-sold IRSA products to be “mate- Business Page 55