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Diamond condemns those involved in rate-rigging

Traders who fixed the interbank interest rate are "reprehensible".

Bob Diamond has condemned the actions of individuals involved in inter-bank interest rate-fixing as “reprehensible”.

Diamond resigned in the wake of revelations about the fixing of the LIBOR rate on Tuesday. Barclays had been hit with a record £2.9m fine as a result of the rate-rigging.

Diamond reported that he was “sorry, disappointed and angry”. He claims he has resigned to protect the bank’s reputation, having only found out about the rigging this month.

Diamond defended attempts by the bank to confront the problem. When rate-rigging was first identified three years ago, he claimed “we said ‘let’s get to the bottom of this’”, pointing out that regulatory agencies had praised Barclays for their cooperation with initial investigations.

There will be ongoing criminal investigations, and Diamond said that a number of supervisors at Barclays had already been disciplined.

Prime Minister David Cameron has described the impact of the fixing of interest rates, which drove up borrowing costs for homeowners and businesses, as “outrageous”. Labour leader Ed Miliband has called for a two-part judicial enquiry as a response to the scandal, looking into both the LIBOR scandal and the wider banking culture.

Around 20 institutions worldwide are implicated in the LIBOR scandal.

Helen Robb reads PPE at Oxford University where she is deputy editor of ISIS magazine.