Barclays’ Bob Diamond resigns

<p>Before the UK market opened on Tuesday, Barclays announced that its CEO Bob Diamond had resigned with immediate effect. In a board statement, the bank […]</p>

Before the UK market opened on Tuesday, Barclays announced that its CEO Bob Diamond had resigned with immediate effect.

In a board statement, the bank confirmed that Marcus Agius, who had tendered his resignation just 24-hours earlier, was to become full time Chairman and will lead the search for a new Chief Executive.

The resignation of Diamond ends days of constant press speculation and public antipathy towards the security of his position in the midst of the libor manipulation scandal that has engulfed Barclays and threatens to engulf the banking sector itself, which awaits further announcements from the FSA’s other investigations.

Diamond said: “The external pressure placed on Barclays has reached a level that risks damaging the franchise – I cannot let that happen. 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.”

The stage is now of course set perfectly for a somewhat uninhibited line of questioning and answering at tomorrow’s Treasury Committee, where Diamond has been called by MP’s to answer difficult questions surrounding the libor scandal and the conversations the bank had with Paul Tucker, the deputy governor of the Bank of England regarding the libor setting.

Barclays shares rose 0.5% as investors digested the news.

Broader markets sees more gains as FTSE 100 rallies 17pts
Broader European markets saw more gains on Tuesday thanks in part to gains in Commodity stocks with both Crude oil and Copper both seeing higher prices. The FTSE 350 mining sector rallied over 1% within the first hour of trading, and this was closely followed by gains in oil firms too.

From an economic data perspective, there is a lack of significant data out of Europe today and so attention switches to the afternoon session where US Factory Orders for May is released and is expected to fall 0.6%.

Build your confidence risk free
Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.