The fall out of the Barclays rate fixing scandal has taken another turn, this time with the resignation of its chief executive, Bob Diamond.
Mr Diamond's resignation follows the now former Barclays chairman, Marcus Agius', departure. Over the past few days, MPs and Barclays investors have been calling for Mr Diamond to follow Mr Agius's example and step down following the recent LIBOR rate fixing scandal which saw the bank fined a record £290 million by UK and US regulators.
In a statement, Mr Diamond, who has been with the bank for 16 years, said: "My motivation has always been to do what I believed to be in the best interests of Barclays. No decision over that period was as hard as the one that I make now to stand down as chief executive. The external pressure placed on Barclays has reached a level that risks damaging the franchise – I cannot let that happen."
Both Mr Diamond and Mr Agius are due to appear before the Treasury Committee tomorrow and on Thursday respectively to answer questions regarding the scandal, where traders tried to manipulate inter-bank rates.
Mr Diamond has said that he is "looking forward to fulfilling my obligation to contribute to the Treasury Committee's enquiries related to the settlements that Barclays announced last week without my leadership in question".
The Chief Secretary to the Treasury, Danny Alexander, said that Mr Diamond's resignation was "the right decision". "There are many questions to be answered about the rate fixing and Barclays will have to answer many of those questions. Responsibility has been taken in the right way. Hopefully this will help Barclays to establish the right culture in the future," he said.
Prime Minister David Cameron yesterday ordered a full inquiry to be made into the banking sector, whilst the Serious Fraud Office stated that it was considering whether criminal charges would be brought against bankers following its investigation with the Financial Services Authority.
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