The move came after the bank was fined for trying to manipulate inter-bank lending rates, for its financial benefit, sparking a government inquiry and calls for criminal investigations. Chairman Marcus Agius, who has also announced his resignation, will now take over the running of Barclays until a replacement is found.
It is a classic case of pride before the fall. Diamond famously defended bankers and their salaries in the face of popular revulsion towards the lifestyle and attitudes of some banking executives in the wake of the global financial crisis. Under the hard-charging Diamond, Barclays was feted as an institution that not only survived the financial crises, but also used it as an opportunity to flourish. We now know that some of that success can be contributed to seemingly underhand dealings.