Bob Diamond has taken a stand against his critics who view the practice of investment banking as just gambling with someone else’s money. Diamond has just been appointed the chief executive of the Barclay’s Group. He has been especially riffed at the comments made by Business Secretary, Vince Cable. Cable said that it “illustrated” the policy dilemma of the combination of casinos and traditional banks.
This time however, Diamond is shooting back at all the comments, saying: These aren’t casino businesses. These are real client driven businesses. We are providing services to corporate clients to fund managers to retail clients through branch banking and high net-worth banking.”
This comment came after admitting that he had been disappointed by the reaction of his appointment. Possibly, the naysayers need to take a look at Bob Diamond’s accomplishments in the past with Barclay’s Capital. He turned Barclay’s Capital into a juggernaut generating more than 80 per cent of the bank’s total profits. This was done over a 14 year span with the investment banking arm.
He added to his sentiment about the feeling of disappointment, saying: “It is disappointing when we hear reference that banks are casinos. It’s disappointing when we hear that Barclay’s Capital is a casino – we closed down our proprietary trading in 1998. It’s just not right to use a phrase like that to encompass investment banking or banking, it is not based on fact and it creates the wrong impression.”
He admitted the bank had certainly made mistakes and they had been through a difficult period.