Banks should be allowed to fail

Bob Diamond, Barclays' chief executive, has told a committeee of MPs that badly-run banks should not be bailed out by taxpayers.

"It is not acceptable for taxpayers to bail out banks," Mr Diamond said during questioning by the Treasury Select Committee. He added that "badly managed" banks should be allowed to fail.

Barclays is not too big to fail, said Mr Diamond, who took over as chief executive of the bank 11 days ago.

The CEO said Barclays' board has not yet decided on the size of its bonus pool, so it has not sought shareholder approval. Mr Diamond is reportedly in line for an £8m payout.

When asked if he would take his bonus this year, after turning it down in recent years, Mr Diamond said: "I will make that decision with my family."

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