Lib Dem peer Lord Oakeshott, who led calls for Mr Diamond to resign in the wake of the scandal has said "Bob Diamond's departure is a great day for democracy".
He is the symbol of the gambling and greed we must root out of our banking system.
Now the top priority is to catch the criminals, break off the casinos from the basic banks and make them lend.
– Lib Dem peer Lord Oakeshott
We must never again let the rich and powerful in the City or the media get their hands round the windpipe of Government.