Barclays

The Bank of England's deputy governor Paul Tucker has asked to be allowed to address the Treasury Select Committee following the revelation he contacted Bob Diamond to discuss Barclays' LIBOR submissions.

Barclays' submission of a memo to the Treasury Select Committee has revealed how Bank of England officials advised the bank on LIBOR.

DIAMOND DEPARTS

The FTSE 100 has risen in early trading, building on recent gains, but Barclays' share price remains volatile as investors react to CEO Bob Diamond's resignation.

The resignation of Barclays CEO Bob Diamond does not lessen the possibility of criminal proceedings against those involved, Chancellor George Osborne has warned.

Barclays boss Bob Diamond has resigned from the bank with immediate effect, just one day ahead of a parliamentary hearing into his conduct following the LIBOR scandal.

Chancellor George Osborne is to announce an inquiry into UK banking standards, with the Serious Fraud Office (SFO) also considering launching criminal prosecutions over the LIBOR rate-fixing scandal.

Analysts have suggested the fallout from the LIBOR price-fixing scandal may ultimately lead to significant asset disposals or even a break-up of the bank.

The reputation of the UK banking sector hit a new low last week after the FSA hit Barclays with its largest ever fine of £59.5m for breaching LIBOR regulations.

Barclays bank chairman Marcus Agius has confirmed his resignation, admitting the "the buck stops with me" for the firm's interest rate fixing scandal.