Caving under mounting political and investor pressure, Barclays chief executive Robert Diamond resigned Tuesday after top ranking employees of the British bank were implicated in rigging an important interest-rate benchmark.
Barclays agreed to pay a $453 million penalty last week after revelations that traders purposefully tried to manipulate the London interbank offered rate, or Libor, to pad profits. The Libor is a widely used benchmark for short-term interest rates and helps determine how costly it is to borrow money.
More senior executives are expected to step down in the wake of the scandal, the Wall Street Journal reported Tuesday, including Jerry del Missier, the banks' chief operating officer, and Marcus Agius, the group's chairman.
The scandal and consequent departures of some of the company's top executives essentially leaves one of the world's largest banks without leadership, but the carnage might not be over yet. According to the Journal, a handful of other U.S. and European banks—including Citigroup, JPMorgan Chase, and Deutsche Bank AG—could be facing the same situation in coming months as investigators continue their inquiry.
Meg Handley is a business reporter for U.S. News & World Report. You can reach her at firstname.lastname@example.org and follow her on Twitter at @mmhandley.