- Former Chief Executive turns down £20m deal but keeps £2m annual pay- Barclays' Chairman makes clear Bank of England Governor key in pushing Diamond out- Letter from watchdog reveals 'strained' relationship between Barclays and regulatorsBarclays' former Chief Executive Bob Diamond has turned down a 20 million pound severance package, according to the bank's Chairman.But the former boss is set to keep pay and benefits worth around £2m for this year.Diamond quit the bank over the LIBOR fixing scandal, which saw Barclays' traders seek to manipulate inter-bank lending rates.Chairman Marcus Agius told MPs on the Treasury Select Committee that Diamond had decided to forego any deferred bonuses, which could be worth up to £20m.However, in a statement released as Agius sat down in front of MP's, the bank said Diamond would receive up to 12 months' salary, pension allowance and other benefits, which could be worth up to £2m.Barclays said Diamond would "support the transition to the new Chief Executive as necessary".The bank's statement on the details of Diamond's pay-off reads:"Consistent with his contract of employment, Mr Diamond will receive up to 12 months' salary, pension allowance and other benefits; and he has agreed to forgo his contractual entitlement to tax equalisation going forward. "The board has agreed with Mr Diamond that he will not receive any future bonus or incentive awards; nor will he receive any further compensation payment in connection with the termination of his employment."Agius told MPs Barclays had hoped Diamond and other executives giving up bonuses when the bank was fined by regulators in the UK and US would be enough.However, he said the public outcry had shown it was "evidently not" the case.The bank's Chairman made clear the prominent role Bank of England Governor played in the forcing Barclays' hand.Agius said he went to see Mervyn King on the Monday evening before Diamond's departure where he was told "in no uncertain terms" the Chief Executive no longer had the support of regulators.He took the details of the conversation back to a telephone meeting with Barclays' board, which concluded the executives would have to call for Diamond's resignation.When told, Diamond asked for time to talk to his family, Agius said.MPs on the Committee put it to Agius that the bank's relationship with the regulator had been strained, something Agius agreed with.But he also said the Financial Services Authority had labelled Barclays 'best in class' compared to other banks.MPs said this view contrasted with a damning letter from FSA Chairman Adair Turner, dated 10 April.In it Turner cited "concerns about the cumulative impression created by a pattern of behaviour over the last few years in which Barclays often seems to be seeking to gain advantage through the use of complex structures, or through regulatory approaches which are at the aggressive end of interpretation of the relevant rules and regulations.Agius said he did not regard the letter as damning, but rather a "firm letter".However, he underlined its seriousness, telling MPs he had not received a letter of that nature from a regulator during his career in banking.
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