Diamond: It's Important That We Allow Banks To Fail

In an interview to appear on FOX Business Network's Countdown to the Closing Bell, Barclays PLC CEO Bob Diamond spoke with Liz Claman live from the World Economic Forum in Davos, Switzerland. Diamond expressed renewed confidence that the economy is recovering, saying “I think we are past the worst of the crisis,” though he also confessed “we need to cut the spending and cut the deficits.” Mr. Diamond added that, in that sense “the U.K. and Europe are probably further ahead of the U.S.” On the subject of “too big to fail,” Mr. Diamond offered this commentary, “It's very important that we allow banks to fail. It's very important that no taxpayer money is ever again used to bailout banks that have failed. And that's why we are working on how we can ensure that banks are able to fail and are able to be wound down.” Regarding bailouts, he added, “No I think that's exactly the plan we are working on. Is how do we create a capital structure, and how do we provide a resolution and recovery plan that is credible with our regulators so if the worst happened, they are comfortable that they can wind down the institution.”