By Peter Schroeder - 07/03/12 03:40 PM EDT
The deal, reached with financial regulators and the Justice Department, settles charges that the bank engaged in "pervasive" attempts to manipulate key interest rates, including the London Interbank Offered Rate (LIBOR), which is what banks in London charge when they lend to one another. Regulators claim the bank for years submitted false reports on its LIBOR borrowing, which would either maximize profits or minimize losses for the bank.
Regulators also charged that Barclays also reported artificially low borrowing rates at the height of the financial crisis, when reporting higher rates would have driven speculation about the bank's strength.
When the settlement was announced, Diamond admitted the bank's actions "fell well short of the standards to which Barclays aspires."
He also announced that top executives would forgo bonuses for the year, but mounting public and political pressure ultimately led to his resignation, along with that of chief operating officer Jerry del Missier.