Mr Diamond was due to give evidence to the Treasury Select Committee this week after Barclays was fined £59m last week for attempted Libor rate manipulation.

Marcus Agius, who also resigned earlier this week, will become full-time chairman and will lead the search for a new chief executive.

Mr Agius will chair the Barclays Executive Committee pending the appointment of a new chief executive and he will be supported by Sir Michael Rake, deputy chairman.

Barclays says the search for a new chief executive will commence immediately and it will consider both internal and external candidates. The businesses will continue to be managed by the existing leadership teams.

Bob Diamond said: “I joined Barclays 16 years ago because I saw an opportunity to build a world class investment banking business. Since then, I have had the privilege of working with some of the most talented, client-focused and diligent people that I have ever come across. We built world class businesses together and added our own distinctive chapter to the long and proud history of Barclays.

“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.


“I am deeply disappointed that the impression created by the events announced last week about what Barclays and its people stand for could not be further from the truth. I know that each and every one of the people at Barclays works hard every day to serve our customers and clients. That is how we support economic growth and the communities in which we live and work.

“I look forward to fulfilling my obligation to contribute to the Treasury Committee’s enquiries related to the settlements that Barclays announced last week without my leadership in question. I leave behind an extraordinarily talented management team that I know is well placed to help the business emerge from this difficult period as one of the leaders in the global banking industry.”

Mr Agius said: “Bob Diamond has made an enormous contribution to Barclays over the last 16 years of distinguished service to the Group, building Barclays Investment Bank into one of the leading global investment banks in the world. As chief executive he has led the bank superbly.

“I look forward to working closely with the Chief Executives of our businesses and the other members of the executive Committee in leading Barclays world class businesses in serving our customers and clients and delivering value for our shareholders.”

Mr Agius will remain in post as chairman until a successor is decided.