Video: Barclays scandal: Bob Diamond resignation is 'the right decision', says George Osborne Speaking less than an hour after Mr Diamond's departure, the Chancellor suggested that bankers involved in the scandal, in which the Libor rate of interest between banks was rigged, could still face prosecution by the Serious Fraud Office. He said it was regrettable that the Financial Services Authority (FSA), the regulator created by the last Labour government, did not have prosecuting powers, and promised that the new body which is due to replace it would do so. He's done the right thing for the country generally because there has got to be a strong Barclays.