Jerry Del Missier, who resigned as chief operating officer of Barclays in the wake of the Libor rate-fixing scandal, will appear before MPs on Monday to be asked why he issued instructions to reduce the bank’s interest rate submissions.
His resignation came barely a week after the Canadian had been promoted from co-head of the investment banking arm to the new role of chief operating officer and followed the announcement of Bob Diamond’s departure as chief executive of the bank.
He was named by Barclays (pdf) as having interpreted a memo written by Diamond as a signal to cut Libor. Diamond wrote the memo following a conversation on 29 October 2008 with Paul Tucker, deputy governor of the Bank of England, who also appeared before MPs to tell them he had not intended issuing any such instruction to the bank.
Barclays has said that Del Missier was investigated by the Financial Services Authority for his actions – which were not ultimately deemed to have changed the level of Libor – and that it did not take any enforcement action. His pay is not disclosed because he does not sit on the board, but under disclosures made in 2010 (pdf) it emerged that his salary was £734,000, bolstered to more than £40m when performance-related deals were factored in from the previous five years.
Following Del Missier in front of the committee will be Lord Turner, chairman of the FSA, banking regulator Andrew Bailey, and Tracey McDermott, the acting head of enforcement, who was involved in fining Barclays. She has made it clear that other banks are being investigated for their actions in the Libor market.
McDermott can expect to be questioned about why Barclays was first to be fined, while Turner may be asked about his role in Diamond’s departure following the admission by the Barclays chairman Marcus Agius that Sir Mervyn King, governor the Bank of England, had told him that Diamond had “lost the confidence of regulators”.
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image: © Barclays