Barclays

Members of Parliament have called on Bob Diamond to give up his payout from Barclays following the LIBOR scandal that has engulfed his former bank.

Bob Diamond has told MPs he feared Barclays would be nationalised during the credit crisis because of its high borrowing rate.

David Cameron has said the LIBOR manipulation scandal is the result of "spivvy and probably illegal" activity but has declined calls for a judge-led inquiry into the affair.

This afternoon Barclays' former chief Bob Diamond faces a barrage of questions from MPs over the LIBOR scandal which has rocked the UK's banking system.

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.