LONDON (MNI) – Bank of England Governor Mervyn King and Financial
Services Authority Chairman Adair Turner’s actions in strong arming
Barclays board, and forcing the resignation of CEO Bob Diamond, have
raised concerns at the Treasury Select Committee.
Turner and King, in evidence to the TSC Monday and Tuesday, gave a
blow-by-blow account of how they acted “as one” in talking to Barclays
board and driving home the message that they were dissatisfied with the
bank’s attitude to regulation and change was needed, which led to the
ousting of Diamond.
The Conservative TSC Chairman, Andrew Tyrie, issued a statement
after the hearings raising concerns about what he termed “arbitrary
pressure” being brought to bear on private sector companies and saying
the BOE would need a stronger board as it takes on a raft of new
regulatory powers.
“Whatever the merits of the action taken in this case, regulators
should not be able to bring arbitrary pressure to bear on the boards of
private companies,” he said.
“From the evidence the Treasury Committee heard today, it appears
that governance checks need bolstering. The Financial Services Bill must
rectify this deficiency in corporate governance, something for which the
Treasury Committee has repeatedly called,” he added.
“The Bank will need a proper Board to support its increased
powers,” he said.
-London newsroom: 00 44 20 7862 7491; e-mail: drobinson@marketnews.com
[TOPICS: M$B$$$,M$$BE$]
