Bob Diamond resignation: George Osborne welcomes his departure Asked if he was sorry that the FSA could not bring prosecutions against bankers found to have rigged rates, he said: "They may still stand in the dock, actually. There is a Serious Fraud investigation ongoing. Mr Osborne said that the scandal had opened the door on "corrupt practices" across the banking sector, but refused to call for the resignation of more chief executives, saying the leadership at other banks had already changed. He went on: "Barclays was in a particular position where the same people were involved when these things happened and that is why I think there was particular pressure on them." The Chancellor said that a "broken banking system" had emerged over a decade under the previous government. Mr Diamond is said to have felt "hounded" out of his job, despite continuing to insist he did not know about the manipulation of the Libor rate, after MPs including Ed Miliband, the Labour leader, called for him to quit. Mr Miliband welcomed his resignation, saying: "This was necessary and right. It was clear Bob Diamond was not the man to lead the change that Barclays needed. The parties remain divided about the best form of inquiry into the scandal, with the Government favouring a swift probe led by MPs while Labour want a full-judge led investigation. Mr Osborne said that "no one more than me" would like to see Ed Balls, the shadow chancellor who was closely involved with the Treasury at the time of the scandal, "in the dock." However, he added, a full inquiry with the power to question politicians could take up to two years, and he felt the public needed answers more swiftly."Let's get on with the job," he said. But Mr Miliband insisted: "This is about more than one man. This is about the culture and practices of the entire banking system which is why we need an independent, open, judge-led, public inquiry. Andrew Tyrie, the senior Conservative MP appointed to lead the inquiry, has said he may resign if he does not get cross-party support. Labour will today force a Commons vote seeking to force through the creation of a a public inquiry. Danny Alexander, the Chief Secretary to the Treasury, added his support to Mr Diamond's resignation. "It's Barclays" decision but I think it's the right thing to do. Senior people at Barclays have taken responsibility for what was an absolutely appalling scandal. They now have to get on with the business of trying to find a new chief executive for the bank. Of course, there are still huge amounts of questions to be answered about the Libor rate fixing and Barlcays will still have to answer many of those questions. But this is the right decision. Responsibility has been taken in the right way and hopefully this will help Barclays to establish a better culture in future. He defended the Government's decision to announce a fast-track parliamentary inquiry instead of a Leveson-style judicial investigation, saying "speed is of the essence" to get to the bottom of illegal banking practices.