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Wednesday, September 08, 2010

Banks and Casinos

The Business Secretary, Vince Cable, is not very happy with the appointment of Bob Diamond currently head of Barclays Capital as CEO of the Barclays next year when the current CEO (John Varley) steps down.

Mr Cable was quoted on the BBC as saying:

"We are worried about this combination of the casinos and the traditional banking."

Having made the criticism, he then tried to suggest it was not his business to comment on the appointment:

"It isn't government's job to appoint the head of a private bank."

Irrespective of the government's feelings about the appointment, the markets have not exactly jumped for joy (possibly detecting that the bank's future relationship with the government will be "stressful"), as the share price fell by around 3% today on top of yesterday's 2.7% fall.

However, the proof of the pudding will be in the eating. Mr Diamond is no fool, and will doubtless do his best to prove his detractors wrong.

Time will tell.

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