In a stock exchange announcement Barclays said: “Barclays today announces the resignation of Bob Diamond as chief executive and a director of Barclays with immediate effect.
“Marcus Agius will become full-time chairman and will lead the search for a new chief executive. Marcus will chair the Barclays Executive Committee pending the appointment of a new chief executive and he will be supported in discharging these responsibilities by Sir Michael Rake, deputy chairman.”
Agius himself said yesterday he would quit Barclays but that decision now appears to have been reversed.
Barclays added the search for a new chief executive will commence immediately. It said it will consider both internal and external candidates. The businesses will continue to be managed by the existing leadership teams.
Diamond is due to speak to MPs tomorrow about the LIBOR scandal, with reports suggesting he is preparing to reveal the extent to which the authorities knew about banks’ manipulation of the rate at which they borrowed.
Diamond said in a statement: “I joined Barclays 16 years ago because I saw an opportunity to build a world class investment banking business. Since then, I have had the privilege of working with some of the most talented, client-focused and diligent people that I have ever come across.
“We built world class businesses together and added our own distinctive chapter to the long and proud history of Barclays. 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.
“The external pressure placed on Barclays has reached a level that risks damaging the franchise – I cannot let that happen.
“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. 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. I look forward to fulfilling my obligation to contribute to the Treasury Committee’s enquiries related to the settlements that Barclays announced last week without my leadership in question.”
Barclays has found itself at the centre of the storm following an outcry from politicians, though major shareholders have remained silent on the issue.
The FSA hit Barclays with its largest ever fine for manipulating the rate banks lend to one another.
Overall the bank was fined £290m by US and UK regulators.
