Last week, Barclays CEO Bob Diamond agreed to forgo his bonus after the bank was fined $453 million by U.S. and British regulators for manipulating interest rate submissions. However, he's not getting off that easily. Following increasing pressure to step down, Diamond announced early on Tuesday that he's offered his resignation, effective immediately.
According to the New York Times, Diamond issued this statement:
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.
Diamond can't simply empty out his desk and enjoy a good sulk, as he's set to testify before a British parliamentary committee on Tuesday. Plus, British authorities say they're considering filing criminal charges against Barclays employees who submitted incorrect figures to throw off interbank-lending rates, and thus avoid drawing attention to problems at the bank during the height of the financial crisis.
Former chairman Marcus Agius will temporarily stay on at the company to head the search for a new CEO. He's intimately acquainted with the type of person they aren't looking for, since he resigned a day earlier.