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Andrew Ross Sorkin just recently did a lengthy profile on Bob Diamond, the disgraced ex-CEO of British financial titan Barclays. Diamond had actually been among the highest paid bank CEOs before he was required to resign from Barclays in 2012 amidst a rate-fixing scandal.
Barclays was charged with taking care of the London Interbank Offered Rate (Libor) every day for a period of four years in order to monetize trading and making their derivatives look more creditworthy than they actually were.
As normal and in line with other exceptionally rich members of society who fall from grace after doing something heinous with cash, Diamond attempts to sell the image that he was a totally typical man and mightn’t be farther from the Wall Street type … until he became a Wall Street type himself:
Bob Diamond did not go to an Ivy Organization school, did not have the right friends and did not grow up knowing anything about finance. He was raised outside of Boston, among 9 kids in an Irish Catholic household, and went to Colby University anticipating to become an instructor, like his moms and dads. That strategy was hindered when he took a task at a medical company, wishing to make adequate money to go back to school to obtain a Ph.D. A year later, in 1979, his boss was worked with to develop the computer system for Morgan Stanley and asked Diamond to go with him. “It’s embarrassing,” Diamond stated, “however when he rested and informed me about Morgan Stanley, I said, ‘Who’s Morgan Stanley?'” Soon after, he made his means to the trading floor, and it did not take long for the outsider to become a totally formed creature of Exchange.
When he discovered the Libor charges levied against Barclays, he “got physically ill, and [he] couldn’t known some of the phone conversations that were occurring in between traders.” He did not understand that the traders from the bank he was running – and getting paid around ₤ 63m, or $98m USD, to do so – were fixing rates for years?
At the beginning of the scandal, Diamond did not even believe he was getting the backlash that he did. He even felt wronged when he was pressured to resign, “‘My first response, which is still my response today, is, He doesn’t have the authority to do that!’ Diamond stated about the pressure [Mervyn King, Governor of the Bank of England] put in to oust him.”
Sorkin litters the piece with little pieces about how Diamond has now descended back onto Earth to live among people again. He works at a “sporadic office.” He now “takes the metro to this workplace in exile” (similar to the rest of us!). He even – and you might want to take a seat for this one, this one’s a drag – “waits in line for his coffee at a cart on Park Opportunity.” At least the cart is on Park Opportunity, right?
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Barclays’ Ex-CEO Bob Diamond is Doing Simply Great, Don’t Worry