Libor scandal: Barclays chief Bob Diamond resigns amid calls for Leveson-style investigation By SCOTT MACNAB Published on Tuesday 3 July 2012 08:19 Bob Diamond today resigned as chief executive of Barclays with immediate effect in the wake of the rate-rigging scandal. US banker bows to pressure and steps down The US banker, who had faced mounting calls to step down, said: "The external pressure placed on Barclays has reached a level that risks damaging the franchise." He added: "I am deeply disappointed that the impression created by the events announced last week about what Barclays and its people stand for could not be further from the truth." Barcalys was fined £290 million by UK and US regulators for manipulating the Libor, the rate at which banks lend to each other. Marcus Agius - who announced his decision to resign yesterday - will lead the search for a new chief executive. Mr Diamond showed no sign of stepping down yesterday as he pledged to see an internal review into Barclays" practices through to implementation. The 60-year-old, who joined the bank 16 years ago, said: "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. He went on: "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. Mr Diamond confirmed he would still appear before the Treasury Select Committee tomorrow to answer questions over the rate-fixing allegations which ultimately led to the Government yesterday launching a parliamentary probe into banking culture. He added: "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." Meanwhile, David Cameron's opponents said the parliamentary probe was not enough.