[ by Melanie Gretchen ] Former Barclays CEO Robert Diamond Jr. is holding out on local lawmakers, British politicians said in a report last week in London.  Specifically, the report not only challenged the fullness, accuracy and candor of Mr. Diamond's account - i.e., testimony - but also prompted politicians to question top leadership at the bank. Following the fBarclays' agreement to settle charges of manipulating Libor by American and British authorities, which cost the bank $452 million, several members of the firm's executive ranks resigned, including chairman Marcus Agius and COO Jerry del Missier. Mr. Diamond testified before Parliament's Treasury Select Committee along with several of the firm's executives and the country's leading regulatory authorities.  This group is  currently investigating the Libor scandal at Barclays. What's at Issue. Under scrutiny in lawmakers' latest report are Mr. Diamond's recollection of concerns that regulators had raised when he was appointed chief executive, as well as issues with the culture at the British bank.

"Mr. Diamond's evidence, at times highly selective, fell well short of the standard that Parliament expects." -- Andrew Tyrie, the British politician who led the recent hearings, said in a separate statement.

Case in Point. In contrast to Mr. Diamond's testimony that British authorities were pleased with his relationship with U.K. regulator FSA, that regulator testified that they challenged the firm's attitude toward risk and, in fact, called on Mr. Diamond to distance himself from colleagues in Barclays' investment banking unit.  By the time this latest report was released, members of Parliament tended to agree with the regulators.

"It seems to us inconceivable that Mr. Diamond could have believed that the F.S.A. was satisfied with the tone at the top of Barclays."

Mr. Diamond defended himself and contested the report, by saying:

"I am disappointed by, and strongly disagree with, several statements by the Treasury Select Committee.  There is little dispute that Barclays was both aggressive in its investigation of this matter and engaged in its cooperation with the appropriate authorities." -- Mr. Diamond.

Going forward, Barclays, which does not agree with all the report's findings, will continue conducting an independent review of its business practices.  In addition, the British government will assess how Libor will, if at all, be set - which may involve greater regulatory oversight of the rate.  Undoubtedly they will create new laws that would establish manipulation of the benchmark as a criminal offense. For further details, go to [Dealbook, 8/17/12].