Pay chief Alison Carnwath is latest director to quit Barclays in the wake of Libor-rigging scandal

| July 26, 2012 | 0 Comments

By
James Salmon

17:06 EST, 25 July 2012


|

17:06 EST, 25 July 2012

The controversial director who signed off an £18million pay package for former Barclays boss Bob Diamond has become the fourth senior executive to quit in the wake of the Libor-rigging scandal.

Alison Carnwath, the non-executive director who heads up the remuneration committee, resigned citing ‘personal reasons’.

The news emerged just hours before reports of a £8.75million payoff for former chief operating officer Jerry del Missier.

Turmoil: Alison Carnwath is the fourth senior executive to quit

Turmoil: Alison Carnwath is the fourth senior executive to quit

It also came as the European
Commission proposed to make a criminal offence the fixing of Libor,
which is used as a benchmark for mortgage rates and trillions of pounds
of investment products.

Justice commissioner Viviane Reding said the move would help ‘put an end to criminal activity in the banking sector’. 

Carnwath’s shock departure added to
Barclays’ leadership crisis, following the resignation of Diamond, his
right-hand man Jerry del Missier, and chairman Marcus Agius – who is
now staying on to find a new chief executive. Insiders at the bank
claimed Carnwath had taken the decision because of the increased
workload following the Libor debacle, which resulted in a £290million
fine for the bank.  

This made it increasingly difficult
for her to juggle her other roles as chairman of Land Securities and a
director of troubled hedge fund Man Group.

But it is not clear whether her resignation was linked to the award for del Missier.

The serial director has also faced
criticism from shareholders for signing off Diamond’s lucrative pay
deal, which also included £5.75million to pay his US tax bill. At the
bank’s fiery annual meeting in April, some 22.5 per cent failed to back
her reinstatement to the board. Carnwath has become something of a
lightening rod for criticism over excessive pay in the City during the
so-called shareholder spring, with a third of Man Group investors also
failing to back her re-appointment.

The continued turmoil at Barclays,
following its involvement in a worldwide conspiracy to rig interest
rates, comes amid calls from politicians in Brussels to make the
manipulation of Libor a criminal offence.

Fifteen financial institutions
including Royal Bank of Scotland, Lloyds and HSBC are being investigated
in the UK, the US and Asia.

Justice commissioner Reding said it
is proposing ‘EU-wide rules to tackle this kind of market abuse and
close any loopholes’. The setting of Libor is currently self-regulated
by the banks.  

Treasury sources welcomed the calls
but said the problem was already being addressed in the Wheatley review
launched by the Government this month.

They said ‘all options are on the table’ including making Libor rigging illegal.

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GOOD BYE …. YOU WILL BE MISSED !!

This semi-educated Alison Carnwath should be made to face the peoples’ justice and thrown in jail. She and her cronies has destroyed Britain for ths generation and the next.

Oh and as an after thought, not sure she was upto the job anyway, judging by the performance of Man Group. If I were Landsec, I would be extremely concerned.

Oh, the EU want to get into the act now?? I dont suppose they would if it was called PIBOR, BIBOR, MIBOR or RIMOR, or indeed anything other than London…. Suggest they stick to their own problems first, viz the spanish banking crisis and let us sort out our own affairs!

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