Barclays Libor scandal: as it happened 17.03 Barclays saw its share price drop 15.53pc today, knocking the price by £30.45 to £165.60. That represents a loss of £3.2bn from the value of the company in just one trading session. 16.51 Telegraph blogger Iain Martin says that the Barclays Libor scandal could be the perfect time to launch a proper public inquiry into the entire banking crisis: Every week it becomes increasingly incredible to me that there has not been a full public inquiry into the banking crisis. I don't mean we need a witch-hunt after one or two individuals. But there is surely a need for us to understand properly the processes and actions of the individuals and companies who failed. It should involve cross-examining the UK's top bankers, regulators and politicians of the time, in order that we (meaning Parliament and wider society) can get answers to the key questions: what exactly went wrong, and what do we want banks to do for us in the future? 16.43 European markets have shut down for the day, downbeat as expectations for a resolution at this week's EU summit fade. The FTSE 100 has dropped 0.56pc, France's CAC lost 0.37pc and Germany's DAX slipped 1.27pc. The largest fallers on the FTSE 100 were the banks, drive lower by fears that the Barclays Libor manipulation scandal would eventually cause costs across the sector. Barclays dropped by 15.53pc, HSBC slipped 2.58pc, Lloyds lost 3.9pc and RBS finished the day off by 11.45pc. 16.24 Robert Peston, the BBC's business editor, has also written an article suggesting that Marcus Agnius, Barclays' chairman, could be the one to resign. The news first: an influential shareholder tells me investors may demand the resignation of Marcus Agius as chairman of Barclays. The main reason, he says, is that the bank may need a cultural overhaul, and investors are not persuaded Mr Agius - who is also a non-executive member of the BBC's executive board - is the right individual to oversee this. If that seems unfair, in that many would say the chief executive Bob Diamond is more responsible for the mess Barclays finds itself in, this investor would not necessarily disagree. But he feels that Diamond is in many ways an able chief executive, and replacing him will be much harder than finding a new chairman. 16.18 Laura Kuenssberg, ITV's business editor, has written that "there is now serious chatter in the City about the real possibility of Bob Diamond having to resign from Barclays." 15.48 The Telegraph's Louise Armitstead sends this dispatch: It's fair to say Barclays shareholders are pretty shell-shocked today. The Libor scandal may have cost Diamond a few bob in terms of his bonus but big investors are nursing millions of pounds of losses from the plunging shareprice. Anger is mounting and they want answers. Here's the first awkard question from the National Association of Pension Funds. The group has said in an email: "Institutional investors like pension funds should be concerned about whether the commitment to improved risk controls has any real meaning. Shareholders should also ask why the Board was apparently unable to carry out its oversight duties effectively. 15.39 Damian Reece, the Telegraph's head of business, thinks that the "thick-skinned" Bob Diamond is unlikely to quit over the Libor scandal, but that the bank's shareholders may well end up forcing him out. Watch what Damian had to say here. 15.34 More on what Vince Cable had to say at the Business, Innovation and Skills committee: There are last resort powers of director disqualification as you know, and we have many hundreds a year who are subject to that action. If the facts suggested action - and obviously we would be subject to legal advice; this is a legal process - then indeed that could well follow. That certainly is a sanction open to us, yes. But as we said at 15.18, he did say it is premature to decide what exactly should happen to Mr Diamond. 15.24 ITV's Laura Kuenssberg tweets that Barclays is in "intense conversations about what next": 15.18 Business Secretary Vince Cable is speaking in front of a parliamentary select committee this afternoon. Unsurprisingly, he was asked about Barclays. He described it as an "appalling scandal" that has caused "great damage" to the bank's reputation. He added that Bob Diamond had a lot of questions to answer, but that it was premature to say what action the bank should take. 15.12 James Hall, the Telegraph's Consumer Affairs Editor, has written this tale on consumer group Which? claiming that the Libor crisis shows the "corruption at the heart of our banking system." Peter Vicary-Smith, chief executive of Which?, said that if it can be proved that borrowers lost money because they paid artificially high interest rates on loans or mortgages then they should be compensated. 14.58 Shadow chancellor, Ed Balls, has also weighed in on Barclays. In Britain, in America, around the world regulation wasn't tough enough, but tough regulation does not explain illegal market-fixing, duplicitous practices, that is what has happened here and I fear much more widely. Executives in individual institutions were paid very, very high multi-million pound salaries and they were responsible for the organisations and the culture in those organisations. Now Bob Diamond, I am sure, is correct when says he didn't know, although he needs to set out exactly the detail of that, but on the wider question of culture it is important that figures like Bob are accountable for what happened and also persuade people that they can lead change in the future. In the meantime, I have to say, as well as tougher regulation, surely it is time to repeat the bank bonus tax and use that for a youth jobs programme. The banks should pay for the mistakes they have made and they should put that to a social purpose. 14.47 With Bob Diamond facing pressure to step down, the Telegraph has looked at who are the directors at Barclays that will decide his fate. The board of Barclays includes the chairmen of the National Audit Office and BT. 14.32 Alistair Osborne, the Telegraph's Business Editor, reported yesterday that banks face billions of dollars of claims after Barclays settles: The British bank is already named as a defendant in various class actions around the world, where investors are seeking compensation for buying financial instruments based on a Libor benchmark that was allegedly manipulated. One of the biggest class-action claims has been filed in New York by the Mayor and City Council of Baltimore and the City of New Britain Firefighters and Police Benefit Fund. 14.25 Barclays' share price is down more than 12pc at the moment and analysts are bracing themselves for billions of pounds in fines and damages across the sector. Sandy Chen, banking analyst at Cenkos Securities, said: The cost of lawsuits related to the Libor rate scandal will likely dwarf the £290 million fine imposed on Barclays - and since Royal Bank of Scotland, HSBC and Lloyds Banking Group have also been named in lawsuits, we expect they will also face significant fines and damages. We are pencilling in multi-year provisions that could run into the billions. Here's another graph showing Barclays' share price move today: 14.14 If you think £290m sounds like a lot, financial journalist Paul Lewis put it in context on Twitter earlier: 14.02 The Telegraph's James Kirkup has tweeted a couple more comments from David Cameron: 13.40 George Osborne has finished speaking about Barclays now, so here's a recap of some of the main points: He described the FSA report as a "shocking indictment of the culture at banks like Barclays in the run up to the financial crisis." The "email exchanges between derivative traders and the Libor submitters working read like an epitaph to an age of irresponsibility. Through 2005, 2006, and early 2007, we see evidence of systematic greed at the expense of financial integrity and stability. The investigations beg three "vital questions": how were such failures allowed to continue undetected and unchecked; what changes are need to our regulatory system to prevent such abuse occurring again; what further investigations are required into the activities at Barclays, what sanctions are available and what questions must the chief executive answer He said the FSA was continuing its investigations into a number of financial institutions, in co-operation with regulators abroad. "It is already clear that the FSA's investigation demonstrates systemic failures at the heart of the financial system at the time," he added. As part of the review into Libor, the Chancellor said the Government was examining whether strengthening the criminal sanctions regime for abuse and market manipulation was warranted. He added that he was considering amendments to the Financial Services Bill that will ensure fines like the one slapped on Barclays will go to help the taxpaying public, not the financial industry. The number of people under investigation by the FSA was expected to increase and that it was in contact with the Serious Fraud Office. "It is clear that what happened at Barclays, and potentially other banks, was completely unacceptable, was systematic of a financial system that elevated greed above all other concerns and brought our economy to its knees," said Mr Osborne. he added that Bob Diamond faced "serious questions" and must reveal what he knew and when he knew it. And here's a video clip of the Chancellor in action: 13.19 Labour MP Andy Love asks when the FSA is going to send out emails entitled "You're nicked, big boy." This is not suggestive of an informal approach to communications from the FSA, but is instead a reference to the emails between traders disclosed in the regulators' reports, such as: "Done...for you big boy." Others include: Come over one day after work and I'm opening a bottle of Bollinger We detailed some of the email exchanges here. 13.08 Chancellor George Osborne is still taking questions in the Commons, but you can read his full statement on the Libor investigation on the Treasury website. 13.06 Here's that missive from the British Bankers' Association that we mentioned at 12.57. The BBA runs Libor: The British Bankers" Association is shocked by yesterday's report about LIBOR. The banks which contribute to the LIBOR rate must meet the necessary obligations to their regulators. The BBA has proactively co-operated with the authorities at every stage and will continue to work with the regulatory investigations into LIBOR, submitting information and making staff available for interview. The current LIBOR review, with which our authorities are fully engaged, has been underway since March this year and is considering all aspects including the setting process. As part of this review we will now be asking the authorities to consider in what manner the LIBOR setting mechanism should be regulated in the future. 13.04 Barclays' shares have now tumbled around 15pc. 12.57 Another tweet from James Quinn, who has news of a missive from the British Bankers' Assocation: 12.54 Here's a little more on what George Osborne said in relation to strengthening criminal sanctions for abuse and market manipulation: Under the previous government's regime, fines paid to the FSA are used to reduce the annual levy other financial institutions are asked to pay. I'm far from convinced in all cases this is the best use of the money and we are considering amendments to the Financial Services Bill that will ensure that fines are of this nature go to help the taxpaying public, not the financial industry. I'm also going to ask my officials to urgently investigate whether this legislation could be applied to the fine imposed on Barclays Bank. 12.49 The Telegraph's James Quinn is listening to the Chancellor. He tweets: 12.45 Alistair Darling says that Libor now has to have some degree of independent supervision - that it "cannot be a work of fiction." He also reminds Mr Osborne that the FSA has the power to take those responsible "off the road." 12.38 The Chancellor said he would look at strengthening criminal sanctions for the FSA, which do not currently extend to manipulation of Libor. 12.37 Osborne says that Bob Diamond has "some very serious questions to answer," including what did he know and when did he know it. 12.35 Osborne said it will be examined as to whether there are any gaps in criminal laws to deal with the Libor probe and that he expects the number of individuals under investigation to increase. He added that the Senior Fraud Office was aware of matters under investigation. 12.31 Osborne says Barclays is not alone in the interbank lending rate probe and that Barclays and other banks were potentially in flagrant breach of proper market conduct.