Diamond(s) in the Trough

Posted by Marvin on July 3, 2012 at 11:17 am

First we listened to Jamie Dimon suck up to Congress about what a good, caring guy he is, what a great legislative body they are, and how, together, they can make the free market system work. He told them how JP Morgan Chase had lost a few billion bucks (current estimate more like $9B) of investors’ money. Then all shook hands, patted one another on the back, and went their merry ways.

Now another gem, Bob Diamond, chief executive of England investment bank, Barclays, is at the center of a LIBOR rate-fixing scandal. The British Parliament will begin a review of England’s banking sector. It appears that, unlike Dimon/Congress, Diamond may have criminal charges initiated. Barclay’s chairman has resigned, taking the bullet for Diamond.

Diamond’s response: No one is more sorry, disappointed and angry about these events than I am. I am sorry because we let down the people whose trust we rely on – our customers and clients; our shareholders; our regulators; and the communities in which we live and work. I am disappointed because many of these behaviors happened on my watch. It is my responsibility to make sure that it cannot happen again.

Not sorry enough. Like Dimon, he feels compelled to remain at his job to fix the problem. Sounds a tad like leaving the fox to guard the henhouse. Diamond will appear before Parliament Wednesday (today). Can’t wait for his explanation, groveling, whatever.

*LIBOR, The London Interbank Offered Rate, is the average interest rate estimated by leading banks in London that they would be charged if borrowing from other banks.

Put ‘em both in a trough. Oh, that that would happen.