Just one day after the Chairman of Barclays resigned over last week's Libor scandal, Chief Executive Officer (CEO) Bob Diamond has called it quits, bowing in to intense pressure from angry politicians over the last few days.
The resignation will have immediate effect, the bank said on Tuesday morning, and outgoing Chairman Marcus Agius will now become a full-time Chairman and lead the search for a new CEO.
Diamond, who is due to answer questions to the Treasury Select Committee on Wednesday, said that the "external pressure placed on Barclays has reached a level that risks damaging the franchise - I cannot let that happen."
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It was revealed last Wednesday that the bank is to pay a £290m fine to UK and US regulators after it was found attempting to control submissions for the London Interbank Offered Rate (LIBOR) and the Euro Interbank Offered Rate (EURIBOR) to benefit the bank's interest rate derivatives traders.
Libor and the Euribor are benchmark reference rates that indicate the interest rate that banks charge when lending to each other.
Barclays is now undergoing an audit of its business practices, which includes: a review of past practices that are thought to be "flawed" over the past few years; a published report of its findings; and a new mandatory code of conduct.
Diamond said: "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."
Prime Minister David Cameron announced on Monday that a parliamentary inquiry is to be launched and the Serious Fraud Office is looking at whether criminal prosecutions are needed; "they are using the full force of the law in dealing with this," he said.
"The British people want to see two things. That bankers who act improperly are punished. And that we learn the broader lessons of what happened in this particular scandal," Cameron said.
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