A ‘small number’ of employees have been blamed for the rigged lending rates scandal which has brought the name of city bankers into disrepute once again. It was revealed that traders lied about the security of the bank in order to gain profit.

Diamond defended his position in an open letter, stating that “When the trader conduct was first discovered by more senior management, steps were immediately taken to stop it, and it was reported to the authorities.”

Former Liberal Democrats leader Paddy Ashdown described Diamond’s position as “untenable” on last night’s BBC Question Time.

Prime Minister David Cameron said Diamond faced “serious questions” and asked “Who was responsible? Who was going to take responsibility? How are they being held accountable?”

Labour leader Ed Milliband said that whoever was responsible “should face the full force of the law”.

The bank were fined £29 million this week by authorities in the UK and USA following an investigation into the rates that banks loaned to each other. The figures showed the rates had been manipulated – several financial instituitions were involved.