GCH Takes Barclays to Court on Mis-selling Claims: Bob Diamond and Rich Ricci on Witness Stand

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By Shane Croucher | December 7, 2013 4:33 AM EST

Bob Diamond is the former chief executive of Barclays (Reuters)

Former Barclays executives Bob Diamond, Rich Ricci and Jerry del Missier have been called as witnesses in a case brought by Guardian Care Homes over alleged mis-sold financial products linked to Libor.

The complainant, GCH, is suing Barclays for £70m, claiming that it was mis-sold Interest Rate Swap Agreements (IRSAs).

A judge ruled that allegations of Libor fixing, for which Barclays paid vast fines to global regulators, could be included as part of GCH's case. It was not part of GCH's initial mis-selling claim.

GCH said it wished to call several former Barclays executives as witnesses in the trial which is due to start in April, reported Reuters.

Barclays lost its appeal to adjourn the trial. The banking giant refutes the GCH claims, adding that the firm had its own financial advisers.

In June 2012, Barclays was fined £290m by the US Commodity Futures Trading Commission, US Department of Justice and the UK's Financial Services Authority for attempting to manipulate Libor.

It avoided a €690m fine from the European Commission for blowing the whistle on a Libor-fixing cartel with three other major banks.

Bob Diamond resigned as chief executive of Barclays in the aftermath of the Libor fixing scandal, though he denied any knowledge of wrongdoing at the bank. Del Missier, the chief operating officer, went soon after.

Former investment banking chief at Barclays Rich Ricci walked out in 2013.

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