Barclays turmoil could lead to downgrade, Moody’s warns

Ratings agency Moody’s has threatened to downgrade Barclays‘ credit rating because of the turmoil at the top of the bank following the Libor scandal, and the difficulty of replacing key senior staff including the former chief executive Bob Diamond.

Moody’s put Barclays under renewed pressure on Thursday by warning that it faces considerable uncertainty following “senior resignations at the bank”. The agency also said it was concerned about the cultural changes needed at Barclays, the day after Diamond appeared before the Treasury select committee where it was claimed the City regulator was worried about the culture of the company.

Diamond quit on Tuesday along with close colleague Jerry del Missierwho was promoted to chief operating officer only last month, while the chairman, Marcus Agius, will also go once he has replaced the chief executive following the £290m fine for manipulating Libor (the London Interbank Offered Rate).

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