No bailouts - Barklays

Barclays boss Bob Diamond has said that taxpayers should not bail out banks, and that those banks that get into trouble should be allowed to fail. "It is not OK for taxpayers to bail out banks," Mr Diamond told a Treasury Committee hearing. On bonuses, he said that Barclays "paid for performance, not for failure". The government has called on banks to pay smaller bonuses, with Deputy Prime Minister Nick Clegg urging them to be "sensitive to the public mood". Mr Diamond said that Barclays had yet to decide on bonus payments to its staff for this year. He added that the "majority" of the amount paid in bonuses went to investment bankers, rather than staff in the retail banking arm. "We are sensitive, we are listening [to calls for restraint], and there is no lack of effort in recognising the importance of this issue and being responsible [over bonuses]," he said. He said that Barclays had "no intention of paying more in bonuses than is necessary". However, he said the bank had to balance these responsibilities with "the environment we operate in", referring to the fact that if Barclays were to unilaterally reduce bonuses, top staff could leave to join competitors. He said he had waived his bonus for the past two years but would wait until he was offered one this year before deciding whether to accept it.