Barclays’ former executive gives up $31 million in bonuses

Former chief executive of Barclays bank in London, Bob Diamond, will voluntarily give up bonuses up to $31 million after he resigned in the midst of a rate-rigging scandal, the bank reported on Tuesday. Although Diamond resigned last week, he will receive 12 months worth of salary, which is about £1.35 million, or $2 million, according to Barclays.

Bank chairman Marcus Agius, who gave evidence to the Treasury Select Committee’s inquiry into the scandal, said Diamond’s decision was one which “the board welcomes and I am glad he has done it.” Barclays’ reputation has been bruised by a scandal over the rates at which banks lend other banks money. Each morning the big banks in London issue rates based on input known as the London interbank offered rate, or Libor, which affects the interest rates of ordinary people on credit card debt, home mortgages, or student loans. In June, British and American regulators fined Barclays $450 million after the bank admitted some of its trading desks purposely underreported its interest rates.