The decision to drop the BBC Newsnight investigation into the Jimmy Savile sexual abuse claim was "flawed", according to a review.
A failure to follow editorial guidelines led to Newsnight's infamous report that saw Lord McAlpine later falsely exposed as a paedophile.
A damning report into the BBC's Jimmy Savile investigation has revealed George Entwistle was previously warned about his "darker side".
Following the publication of the Pollard Report, Stephen Mitchell, Deputy Head of News at the BBC, has released the following statement announcing that he retiring, despite earlier reports from the BBC that he was resigning:
It is with great sadness that I have decided to retire from the BBC after more than 38 years’ service of which I am very proud and which I have found greatly enjoyable.
Given the strain over the past month since being told to stand aside from the job I loved, having endured the Pollard review process and now having read its criticisms, I have decided that it is in my interests and those of the BBC that I bring my career to a dignified end.
Whilst I feel vindicated that the review has found that I put no undue pressure on Peter Rippon, I disagree with the remainder of Mr Pollard's criticisms in relation to me.
I am grateful for all the support I have received from friends and colleagues around the BBC.
– Former BBC Director-General George Entwistle
I am pleased that the Pollard Report makes it clear I played no part whatever in Newsnight’s decision not to broadcast the original Savile investigation – just as I was not personally to blame in any way for the journalistic failures on Newsnight when it broadcast its erroneous report about the North Wales care home.
With Nick Pollard’s work now concluded, I look forward to taking time to consider my future plans.
ITV News UK Editor Lucy Manning asked the report author Nick Pollard how he felt as a journalist about what happened at Newsnight.
The former head of Sky News said that the personal difficulties between members of the team were "quite shocking."
ITV News UK Editor Lucy Manning asked BBC Acting Director-General Tim Davie why after the criticisms in the Pollard report, no one had lost their jobs.
Mr Davie said that, "the Director General has left the BBC, the Deputy Director of News has left the BBC and we're putting a totally new team in to Newsnight.
"Now I think there will be a lot of people with theories about what we should or shouldn't have done, I would say - go to the report and look at it calmly and think about what is fair and proportionate.
"That's what I've done and I think we've made the right decision."
I am pleased that the BBC Trust have acted quickly to publish Nick Pollard's review.
The report raises serious questions around editorial and management issues at the BBC and I look to the Trust to help tackle these.
I also remind the Trust how vital it is to publish all relevant evidence, as soon as possible, in order to re-build public trust and confidence in the BBC.
It remains critical that we do not lose sight of the most important issue in this - the many victims of sexual abuse by Savile.
– Culture Secretary Maria Miller
I urge the BBC to now focus on the review into those abuses, and ensure it is swift and transparent.
I will remain in close touch with the Trust as they oversee this work.
I asked acting BBC Director-General Tim Davie why, given the report was so critical, no one has been sacked - isn't it a shuffling of chairs?
He defended it, saying former DG George Entwistle and deputy head of news Stephen Mitchell left.
BBC has said it is pleased the report shows no pressure on the decision to drop the Jimmy Savile story but added that the report makes difficult reading.
The Pollard report cost the BBC - licence fee payers - £2 million.
Former Newsnight Editor Peter Rippon and his deputy will be replaced over the BBC's handling of the Jimmy Savile investigation.
The controller for BBC Radio 5 Live, Adrian Van Klaveren, is also being moved to a non-news position at the corporation, acting director-general Tim Davie has confirmed.
Broadcast watchdog Ofcom are still investigating the Newsnight programme.
After the BBC Trust released their findings a spokesman said:
Ofcom's investigation into the Newsnight child sex abuse allegations is currently ongoing.
We will make the outcome of this investigation known in due course.