The president of Barclays, Bob Diamond, has revealed that the bank will defer up to 60pc of its bonuses this year as it attempts the “change the narrative” on the financial crisis away from pay and on to the retention of strong performing banks in London.
The president of Barclays, Bob Diamond, has revealed that the bank will defer up to 60pc of its bonuses this year as it attempts the “change the narrative” on the financial crisis away from pay and on to the retention of strong performing banks in London.
In a wide-ranging interview with The Sunday Telegraph, Mr Diamond admitted that banks had made mistakes in the past, said that bonuses had to be better controlled with more remuneration paid in fixed income.
He also argued that although banks should not be split between investment and retail it was important that no institution was “too big to fail”.
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In a tacit admission that the taxpayer should not have to pick up the tab for failing institutions in the future, Mr Diamond said: “In principle we should not have institutions that are too big too fail or too complex to fail.
“We need a regulatory framework that allows us to address failing institutions. Big and systemic are not synonymous and big and failure should not be in the same sentence.
“We saw significant failures during the crisis in narrow banking – narrow investment banking and narrow retail banking.
“We feel strongly that Barclays and others that have the integrated universal banking model, if we took that away it would add risk to the system, it wouldn’t take risk away.”
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