Barclays boss urged to quit

Barclays boss Bob Diamond is facing calls to quit as he said all those responsible for the rate-rigging scandal should pay the price.

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'Bob Diamond has some very serious questions to answer'

When asked whether Mr Diamond should resign, Financial Secretary to the Treasury Mark Hoban told BBC Breakfast:

I think Bob Diamond has got some very serious questions to answer. He needs to explain what happened, why didn't Barclays spot it earlier, and what has changed at Barclays.

We have seen a huge scandal here in Barclays, as is clear, this doesn't just affect Barclays, banks on both sides of the Atlantic are being investigated by regulators. So we do need to get to the bottom of this. We need to find out what has happened and what lessons have been learned by the banks.

Barclays boss Bob Diamond in the headlines

Mr Diamond's highest-profile deal was Barclays' controversial acquisition of the brokerage arm of US bank Lehman Brothers for 1.7 billion US dollars (£1.1 billion) after it collapsed in 2008.

In June 2010, Mr Diamond faced a federal court hearing in Manhattan, which was looking into allegations that Barclays duped Lehman Brothers out of billions of dollars during the deal.

It is largely down to Mr Diamond's Barclays Capital division that the UK bank avoided state assistance during the credit crunch, although market turmoil has dented his former division's profits in recent months.

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