Bob Diamond (banker)

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Bob Diamond
Bob Diamond - World Economic Forum Annual Meeting 2012.jpg
Born Robert Edward Diamond, Jr.
(1951-07-27) July 27, 1951 (age 62)[4][5]
Concord, Massachusetts[6]
Residence New York City[7][8]
Nationality  United States,
 United Kingdom [5][9]
Alma mater Colby College (B.A., Economics)[10]
University of Connecticut (MBA)
Occupation Banker
Years active 1979 – present
Employer Morgan Stanley (1979-1992)
CS First Boston (1992-1996)
Barclays (1996-2012)
Atlas Mara (2013-to date)[11]
Spouse(s) Jennifer[6][12]
Children Three - Two sons and a daughter[6][12]

Robert "Bob" Edward Diamond Jr. (born July 27, 1951)[4] is a British-American banker and former group chief executive of the British bank, Barclays Plc.[13]

Diamond, who holds a B.A. in Economics from Colby College, and an M.B.A from University of Connecticut; began his career as a lecturer, and entered the financial world in 1979, when he joined Morgan Stanley. He moved to CS First Boston in 1992, and later to Barclays in 1996. He rose to become Chief Executive of Barclays Capital and was appointed President of Barclays in 2005.[14] In 2010, he became its Deputy Group Chief Executive;[15] and in January 2011, succeeded John Varley as Group Chief Executive of Barclays.[16]

He has dual U.S.-U.K. citizenship, and was voted the 37th in the New Statesman’s annual survey of the world's 50 People Who Matter 2010.[17] He lives in New York City with his wife, Jennifer, and children.[18]

Diamond resigned as chief executive of Barclays on July 3, 2012, following controversy over manipulation of Libor interest rates by traders employed by the bank.[19][20]

Early years and education[edit]

Bob Diamond was born in Concord, Massachusetts, on July 27, 1951.[4] One of nine children,[5] Diamond grew up in a family of Irish Catholic background.[21] His parents, Anne and Robert Edward Diamond, Sr., were both teachers.[22]

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.[23] He was awarded an MBA from the University of Connecticut Business School, graduating first in his class.[13]

Career[edit]

Early years and Morgan Stanley : 1976 to 1992[edit]

He began his career as a lecturer at the School of Business, University of Connecticut from 1976-1977.[24]

Diamond then briefly worked for United States Surgical Corporation in Norwalk, CT in the IT Department. There he met William B. Cook whom he later followed to Morgan Stanley.

Diamond joined Morgan Stanley in 1979 and held several positions. He rose to the post of managing director and head of fixed income trading division.

CS First Boston : 1992 to 1996[edit]

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[edit]

Diamond joined Barclays on July 4, 1996,[24] and in September 1997 became a member of the Executive Committee of the company, Britain's second largest banking group.[25]

Diamond was appointed chief executive of Corporate & Investment Banking and Wealth Management, comprising Barclays Capital, Barclays Corporate and Barclays Bank, and was an executive director of the boards of Barclays Plc and Barclays Bank Plc.

Diamond became a leading candidate to succeed Matthew Barrett as Group Chief Executive of Barclays Plc in 2004, but that post instead went to John Varley, who was five years younger than Diamond.[4] In 2005, Diamond was appointed President of Barclays Plc and joined its board of directors, while also remaining Chief Executive of Barclays Capital.[14][26]

Diamond headed Barclays' bid to purchase Lehman Brothers in September 2008, but that was stymied by the Bank of England.[5] Diamond then sealed an agreement with Lehman Brothers President and COO Bart McDade to purchase key assets of that firm after it filed for bankruptcy, which instantly gave Barclays an investment banking foothold on Wall Street.[27]

Diamond became Deputy Group Chief Executive on October 1, 2010,[15] and then succeeded John Varley as Group Chief Executive on January 1, 2011.[16][28]

On July 2, 2012 Barclays' chairman, Marcus Agius, resigned following the heavy fine that Barclays suffered as a result of some of their company employees being involved in manipulating the London Interbank Offered Rate, which became known as the LIBOR scandal.[29][30] Just 24 hours later, on July 3, Diamond resigned his post with immediate effect.[11] Diamond's longtime protege, Jerry del Missier, who had been appointed Chief Operating Officer of Barclays on June 22, 2012, resigned on July 2, 2012.[31]

Controversies[edit]

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 £63 million) and lack of humility.[32][33] 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.[34]

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".[35][36] 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.[37] 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.[38] 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."[37] 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."[37] The U.S. Department of Justice had also been involved in the investigation.[37] Diamond announced on June 29, 2012 that he would not resign over the bank's role in the fraud.[39] Diamond voluntarily gave up his bonus for 2012 but initially maintained that he would remain as chief executive. 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 as chief executive on July 3, 2012.[40]

Diamond's resignation under pressure was controversial. The New York Times noted that Diamond’s role in the scandal was minimal and suggested that the real reason for his sacking was that he had become the “unacceptable face of banking”. The Financial Times reported that “After the financial crisis, the British establishment became very divided over what’s the model for the big banks that we want to see. Bob represented investment banking big time. He represented the success of it — but also the sense that investment banking is dicey and not a completely sound business. He represented a way of doing business that we’ve become very uncomfortable with.” Diamond's pay, while considered high for a major British company, was low relative to major American banks on Wall Street. Other bank CEOs had been ousted by their board of directors, howevever while Diamond enjoyed the strong support of the board despite the scandal, he had been pushed out at the insistence of Mervyn King, the governor of the Bank of England. Diamond, who reported that he was "sickened" by news of the Libor scandal, was surprised since Barclays had taken the advice of its lawyers to cooperate in the investigation and be first bank to settle the charges.[41]

In March 2013, Diamond was set to be paid about £2m ($3m) in July, a year after he left the bank following its Libor interest rate fixing scandal.[42]

Atlas Mara Co-Nvest Limited : 2013 to Date[edit]

On November 28, 2013, Diamond and entrepreneur Ashish Thakkar founded Atlas Mara, a company whose Geographical area of focus is banking in the African continent.[43] The company was listed on the London Stock Exchange on December 17, 2013 through an IPO which raised USD 325 million.[44]

Personal life[edit]

Diamond married his wife, Jennifer, an engineer from Michigan, in 1983.[45] 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[46] and an adviser to Conservative Mayor of London Boris Johnson.[47]

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; he was a 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.[24]

Diamond, along with his wife Jennifer, is a founding circle member of The Nantucket Project, an annual festival of ideas on Nantucket, Massachusetts.[48]

In 2011 he was included in the 50 Most Influential ranking of Bloomberg Markets Magazine.

References[edit]

  1. ^ Shariatmadari, David (January 26, 2012). "Davos 2012: Day two, as it happened". London: Guardian. 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 Barrow, Becky; Shipman, Tim (January 12, 2011). "MPs grill Barclays boss". London: Daily Mail. Retrieved April 17, 2012. 
  5. ^ a b c Treanor, Jill (August 6, 2005). "Big hitter - Bob Diamond, chief executive, Barclays Capital". London: Guardian. 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. ^ "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. 
  8. ^ Treanor, Jill (April 12, 2012). "Paying Bob Diamond's tax bill proves very expensive for Barclays". London: Guardian. Retrieved April 17, 2012. 
  9. ^ O'Carroll, Lisa (December 30, 2011). "Barclays boss reveals 'no jerks' rule". London: Guardian. Retrieved April 17, 2012. 
  10. ^ "Bob Diamond named CEO of Barclays". Guardian. September 7, 2012. Retrieved April 17, 2012. 
  11. ^ a b "Board changes", Barclay's press release, 03 Jul 2012.
  12. ^ a b Harris, John (February 16, 2008). "City limits". London: Guardian. Retrieved April 17, 2012. 
  13. ^ a b "Barclays Bank Plc , Executive profile - Robert E. Diamond". Barclays. Retrieved April 18, 2012. 
  14. ^ a b [1]
  15. ^ a b "John Varley to step down as Group Chief Executive to be succeeded by Robert E Diamond Jr". Newsroom.barclays.com. Retrieved June 28, 2012. 
  16. ^ a b Wilson, Harry (December 17, 2010). "Bob Diamond takes over as Barclays chief executive early". The Daily Telegraph (London). 
  17. ^ "37. Bob Diamond - 50 People Who Matter 2010". New Statesman. Retrieved October 11, 2010. 
  18. ^ ROSS SORKIN, ANDREW (May 2, 2013). "Robert Diamond’s Next Life". The New York Times. Retrieved 16 May 2013. 
  19. ^ "Barclays boss Bob Diamond resigns amid Libor scandal". BBC News (London). July 3, 2012. 
  20. ^ "Bob Diamond resigns from Barclays: the full statement". The Daily Telegraph (London). July 3, 2012. 
  21. ^ "The Deal of the Century". esquire.com. September 11, 2009. Retrieved April 18, 2012. 
  22. ^ "Bob Diamond on his job: Stressful? I begin each day by smiling". Mirror.co.uk. September 8, 2010. Retrieved April 18, 2012. 
  23. ^ "Diamond Parries Attacks on Pay With Vow to Earn Public Trust". Bloomberg. December 1, 2010. Retrieved April 18, 2012. 
  24. ^ a b c [2][dead link]
  25. ^ "about-us/bob-diamond", defunct Barclay's web page http://group.barclays.com/about-barclays/about-us/bob-diamond.
  26. ^ "Diamond Parries Attacks on Pay With Vow to Earn Public Trust". Bloomberg. 
  27. ^ Sherman, Gabriel (September 21, 2008). "How a Lehman Trader Copes With Income Shrinkage". New York Magazine. Retrieved June 28, 2012. 
  28. ^ "Date of CEO succession brought forward", Barclay's press release, 17 Dec 2010.
  29. ^ "Barclays bank chairman Marcus Agius to resign". BBC News. 2 July 2012. Retrieved 2 July 2012. 
  30. ^ "Libor scandal: Who might have lost?". BBC News. 28 June 2012. Retrieved 2 July 2012. 
  31. ^ [3]
  32. ^ Langford, Mark, "Mandelson Attacks Bank Boss For £63m Salary", Sky News Online, 04 April 2010.
  33. ^ "Barclays boss Bob Diamond resigns amid Libor scandal", BBC.
  34. ^ Strachan, Maxwell (March 7, 2011). "Barclays CEO Robert Diamond Awarded $10.6 Million Bonus". Huffingtonpost.com. Retrieved June 28, 2012. 
  35. ^ Treanor, Jill (June 27, 2012). "Barclays chief Bob Diamond gives up 2012 bonus over £290m fine". The Guardian (London). Retrieved June 27, 2012. 
  36. ^ "Barclays to pay over 450 million dollars to settle charges regarding LIBOR". Xinhua. June 27, 2012. Retrieved June 27, 2012. 
  37. ^ a b c d "Barclays fined for attempts to manipulate Libor rates". BBC News (BBC). June 27, 2012. Retrieved June 27, 2012. 
  38. ^ "Barclays to pay largest civil fine in CFTC history". CBS News. June 27, 2012. Retrieved June 27, 2012. 
  39. ^ "Barclays boss Bob Diamond says he will not resign". BBC News (BBC). June 29, 2012. Retrieved June 29, 2012. 
  40. ^ "Bob Diamond". 4 July 2012. 
  41. ^ "Robert Diamond's Next Life". The New York Times. May 2, 2013. 
  42. ^ http://www.news24.com/fin24/Companies/Financial-Services/3m-payout-for-ex-Barclays-boss-Diamond-20130308
  43. ^ Atlas Mara Co-Nvest Limited 2013 Prospectus Page 51 to 53
  44. ^ Atlas Mara Co-Nvest Limited Factsheet
  45. ^ Duncan, Hugo (September 8, 2010). "Backlash over Barclays' £70m man: Five-year package means the new chief could make a fortune (again)". Daily Mail (London). 
  46. ^ Mychasuk, Emiliya (June 19, 2008). "Diamond drives the McCain bus". FT.com. Retrieved June 28, 2012. 
  47. ^ Walsh, Dominic (April 19, 2008). "Boris Johnson says Bob Diamond is a mayors best friend". The Times (London). 
  48. ^ http://www.nantucketproject.com/about1

External links[edit]

Business positions
Preceded by
John Silvester Varley
Group Chief Executive of Barclays plc
Jan 1, 2011 – July 3, 2012
Succeeded by
Antony Jenkins