Barclays chief executive Bob Diamond has resigned a week after the bank was fined a record amount for trying to manipulate inter-bank lending rates.

The bank was fined $450 million by British and U.S. regulators after admitting it purposely under-reported its interest rates.

Diamond said he was stepping down because the external pressure on the bank risked damaging the franchise.

Chief operating officer, Jerry del Missier has also resigned, the third top executive in two days to do so.

Barclays chairman Marcus Agius, who had announced his own resignation on Monday, will now take over the running of Barclays until a new chief executive is appointed.