It was encouraging to read about a businessman engaging honestly and openly in politics and apparently pursuing sound free-market policies.

Bob Diamond is looking to undermine efforts to regulate his business – Barclays Bank – by helping to ensure it never needs to receive a bailout:

The degree to which this fussing has infuriated Diamond is underlined by his rearguard action. He told analysts today that Barclays has “offered itself as a test case” to international regulators in coming up with a recovery and resolution plan – a way to wind up a huge bank without a taxpayer bailout.

“The eradication of ‘too-big-to-fail’ problem is a critical initiative,” Diamond said forcefully.

This is no arcane intellectual interest. It is vital political ammunition that Diamond is keen to deploy against any argument that an “implicit subsidy” justifies more and more government interference.

And when the Eurozone crisis flares up again, it could also be an urgent practical matter for regulators as weak banks start to tumble.

Read the whole thing.