Notes from a September 2010 meeting between former FSA boss Hector Sants and Barclays chairman Marcus Agius show they discussed historical concerns regarding Barclays risk appetite and control framework.
“At the time of the FSA’s concerns BD [Bob Diamond] was managing the area within the group where concerns were foremost therefore it is important that in his new role as CEO he ensure the continued progress of initiatives the group has commenced,” the notes read.
They also show that the two discussed the ongoing LIBOR investigation, with Sants noting that the FSA’s position on Diamond’s appointment could change depending on the outcome.
The notes were released by the Treasury Select Committee (TSC) and contradict earlier statements to the committee by Agius that the FSA did not raise the LIBOR issue during the approval process.
Their release was prompted by a letter from Sants to Andrew Tyrie, the chair of the TSC, in which he called for documents to be made public showing the concerns raised.
Other concerns included the relationship Diamond had with the FSA at the time, with Sants noting that it had “not reached the level of openness, transparency and willingness to air issues with the FSA as is the case with John Varley (current CEO)”.
“MA [Marcus Agius] agreed and said he would make sure BD steps up in the way he should. JV [John Varley] will also ‘coach’ BD in his remaining six months,” they say.
“MA added that whilst BD is very competitive and lost out in the previous CEO selection to JV, he suspects he will now see him mature and relax given he has now achieved his goal.”
