Barclays Boss Bob Diamond Resigns

Barclays chief executive Bob Diamond has stepped down with immediate effect.

The move follows the bank receiving a £290m ($450m) record fine by US and UK regulators for attempting to rig Libor and Euribor, the interest rates at which banks lend to each other, which underpin trillions of pounds worth of financial transactions.

In a statement Mr Diamond said: "I joined Barclays 16 years ago because I saw an opportunity to build a business out of almost nothing. Since then, I have had the privilege of working with some of the most talented, client-focused and diligent people that I have ever come across. We built world class businesses together and added our own distinctive chapter to the long and proud history of Barclays.

"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 has reached a level that risks damaging the franchise – I cannot let that happen.

"I am deeply disappointed that the impression created by the events of last week about what Barclays and its people stand for could not be further from the truth. I know that each and every one of the people at Barclays works hard every day to serve our customers and clients. That is how we support economic growth and the communities in which we live and work. I look 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.

"I leave behind an extraordinarily talented management team that I know is well placed to help the business emerge from this difficult period as one of the leaders in the global banking industry."

Chancellor George Osborne welcomed the decision and naming it the "first step towards a new culture of responsibility in British banking" and "the right decision for the country".

Chairman Marcus Agius, who had announced his own resignation on Monday, will now take over the running of Barclays until a replacement is found.

Marcus Agius will become full-time Chairman and will lead the search for a new Chief Executive.

He said: "Bob Diamond has made an enormous contribution to Barclays over the last 16 years of distinguished service to the Group, building Barclays Investment Bank into one of the leading global investment banks in the world. As Chief Executive he has led the bank superbly. I look forward to working closely with the Chief Executives of our businesses and the other members of the executive Committee in leading Barclays world class businesses in serving our customers and clients and delivering value for our shareholders."

(GK)