Bob Diamond

Former Barclays CEO Bob Diamond thinks the post-financial crisis environment has led to banks taking too few risks.
“If they are totally without risk, they are not helping create jobs and economic growth,” Diamond said in an interview with the BBC.
Diamond was once labelled the “unacceptable face of banking” by Labour minister Peter Mandelson.

With the 10-year anniversary of the collapse of Lehman Brothers just two days away, many key figures from the financial crisis have taken the opportunity in recent days to reflect on their part in it.

Most have spoken of their regrets from the time, but largely struck a positive tone on the changes to the financial system that have occurred since then to make the world safer.

Former Barclays CEO Bob Diamond has struck a slightly different tone, however. He said in an interview on Thursday that banks need to be taking more risks today, not fewer.

“If they are totally without risk, they are not helping create jobs and economic growth,” Diamond said in an interview with the BBC.

“The culture of banking now is that if anyone makes a mistake they get fined — or the bank is in trouble.”

Diamond, was head of Barclays Capital arm during the crisis, before becoming its CEO in 2011. During his time at the bank, Labour party grandee Peter Mandelson famously labelled him the “unacceptable face of banking.”

He left Barclays in 2012 amid the LIBOR rigging scandal and is now involved with Atlas Mara, a financial services firm focused on Africa, which he cofounded in 2013.

Diamond told the BBC that all banks should not be lumped together when it comes to assessing the crisis. British lenders like Barclays and HSBC should not be compared to those that needed government aid like Lloyds and RBS.

“I think HSBC and Barclays deserve credit for …read more

Source:: Business Insider

      

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