Barclays Chief Resigns

Bob Diamond, the chief executive of Barclays PLC, has resigned after allegations of rigging key interest rates. A few hours later, Barclays chief operating officer Jerry del Missier also stepped down.

Barclays chairman Marcus Agius was the first high-ranking official to quit, resigning two days ago. Agius, however, is staying until a new chief executive has been appointed.

The series of resignations stemmed from allegations that the bank shelled out a significant amount to settle a US and UK probe that bank traders blatantly and deliberately sought ways to manipulate key interest rates.

The UK government implemented a series of probes to determine the ethical standards in the banking sector. The UK Serious Fraud Office also announced that it is considering filing a case against those who tried to rig the interest rates.

Diamond resigned one day before he is scheduled to appear before the UK’s Treasury Select Committee. A spokesperson from Barclays said that even if Diamond has resigned, he will still appear before the committee.

The spokesperson, however, declined to say who will succeed Diamond as chief executive. He added that the bank is reviewing its succession plans although sources said some are eyeing Antony Jenkins to become the next chief executive.

Jenkins is head of Barclay’s retail business.

Barclay has also expressed its commitment to look into the allegations. The company appears to be launching its own independent audit to assess its business practices.