The Chancellor and Deputy Prime Minister have both welcomed Barclays Chief Executive Bob Diamond's decision to quit over the interest rate-rigging scandal.

He becomes the highest-profile victim so far in an investigation of a dozen major banks across the world ... and it means outgoing chairman Marcus Agius - who stepped down yesterday - will become full-time Chairman and lead the search for a new Chief Executive.

Labour leader Ed Miliband is continuing to call for an independent, open, judge-led public inquiry: