Barclays chief executive resigns

The chief executive of Barclays has resigned less than a week after the bank was fined for trying to manipulate inter-bank lending rates.

Bob Diamond leaves the bank with immediate effect and says he is stepping down because the external pressure on the bank risked “damaging the franchise.” Diamond will appear before MPs on the Treasury Committee on Wednesday to answer questions regarding the Libor scandal.

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

Chancellor George Osborne says: “It is the right decision for the country,” and also hopes it is the “first step towards a new culture of responsibility in British banking.”