The 'Unacceptable Face Of Banking'

Bob Diamond

That, according to UK Business Secretary Peter Mandelson, is Barclays President Bob Diamond, who told The Times newspaper that Diamond's alleged £63m 2009 pay awards were just not cricket.

In an extraordinary outburst by the man who was forced out of the Labour Cabinet first time around for borrowing money (interest free) from a fellow member of the Government in order to purchase a house in trendy Notting Hill, Mandelson said: 'If you look at Bob Diamond, who took £63m in pay - that, to me, is the unacceptable face of banking. He hasn't earned that money, he's taken £63m not by building business or adding value or creating long-term economic strength, he has done so by deal-making and shuffling paper around'.

One banker told Here Is The City: 'How this man (Mandelson), who has spent years living high on the hog at taxpayer expense, engaging in political deal-making in the UK and shuffling paper around in Europe, has the gall to criticise Bob Diamond is beyond me. Diamond has spent 13 years helping to make Barclays one of the top banks in the world, building businesses and creating wealth. Mandelson is a clown, and should try to engage his brain before opening his mouth. He has picked the wrong target this time'.

Barclays has also come out fighting, insisting that Diamond 'was paid £250,000 in 2009, he took no bonus for 2009 and no bonus for 2008. The £63m figure is a total fiction, it is wilful distortion'. Diamond did, however, receive some £27m last year for his stake in Barclays Global Investors (a business he helped to build), after its sale to BlackRock, and is included in a bank long-term incentive plan which could see him make as much as £18m in 3 years should certain performance targets be hit.

Finally, The Guardian reports that Keith Skeoch, the head of Standard Life Investments who has been lashing out at banker pay, managed to bag £2.1m himself in 2009, including a £1.6m bonus. Nice.

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