Barclays chief executive Bob Diamond resigns

Diamond is to go immediately after a 15-year career with the bank and only 18 months as chief executive.

By AGENCIES

Bob Diamond has resigned from Barclays in the face of relentless political pressure for him to go following the interest rate manipulation scandal.

An attempt by the board to save his position by accepting the resignation of the chairman, Marcus Agius, on Monday has failed. Instead Agius will now become full-time chairman and lead the search for a new chief executive.In a stunning turnaround – only on Monday the 60-year old chief executive was vowing to stay – Diamond is to go immediately after a 15-year career with the bank and only 18 months as chief executive.

Diamond's resignation was welcomed by the government, which has come under increasing pressure to launch a public inquiry into the scandal. George Osborne, speaking on BBC Radio 4's Today programme, said it was "the right decision for Barclays – and for the country".

"I think Bob Diamond's resignation is the first step towards the new age of responsibility we need to see."

Asked whether he had played a part in Diamond's exit, the chancellor denied it, saying he was not in his job to decide who ran Britain's banks.

Osborne also condemned the City's "corrupt practices", suggesting that criminal cases over the bank's manipulation of the inter-bank lending rate would follow, even though no one responsible has yet been charged with any offence.

Ed Miliband said Diamond's departure was "necessary and right", but repeated his call for a public inquiry.

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