Diamond resigned this morning. He said: “The external pressure placed on Barclays has reached a level that risks damaging the franchise – I cannot let that happen.”
But speaking on the BBC’s Today Programme, the Chancellor said there were still question for senior figures to answer.
“I do not think the Bob Diamonds of this world would have resigned four or five years ago,” he said.
“The LIBOR scandal and the manipulation has opened a door on the very bad practices in banking.
“They may well stand in the dock – there is a Serious Fraud Office investigation in place.”
Osborne said it was unfortunate the FSA did not feel it had the criminal powers to investigate the case, something the government was “urgently” looking at rectifying, under the new twin peaks regulatory regime.
The Chancellor denied he had directly pressured the Barclays board.
“It’s not the job of the Chancellor to decide who runs a private company,” he said. “Obviously we had conversations but this is ultimately a decision for the board. I was always clear it is not a decision for me.”
“I think it is the right decision for Barclays and the country, because we need the bank lending to the economy. I hope it is the first step to a new banking system.”
