If we take Bob Diamond and Paul Tucker at their word, part of the Libor scandal at Barclays can be chalked up to a series of comic misunderstandings, like a children’s game of telephone.

Britain’s biggest banks were tonight embroiled in a criminal investigation after the Serious Fraud Office opened an official inquiry into the rate-rigging affair.

British banking giant Barclays today saw its credit rating outlook downgraded to negative to reflect concerns over the impact of Bob Diamond's shock resignation.

The former head of Barclays apologised for the “reprehensible” behaviour of his traders who fixed interest rates, but told British MPs his bank was unfairly singled out after coming forward to admit wrongdoing.

Former Barclays boss Bob Diamond will make an explosive appearance before MPs today after dragging senior Bank of England and UK government figures into the rate-rigging scandal.

A phone call between Barclays boss Bob Diamond and the Bank of Englandultimately led to some of the rate-rigging actions at the heart of the ongoing banking scandal, the bank said yesterday.

It has been a chaotic week for investors, with shocks coming from major companies on both side of the Atlantic.

A phone call between Barclays boss Bob Diamond and the Bank of England ultimately led to some of the rate-rigging actions at the heart of the ongoing banking scandal, the bank said today.

Serious Fraud Office investigators are in talks with the City watchdog in Britain over the Barclays rate-rigging scandal that has rocked the banking industry, Chancellor George Osborne said today.

Banking giant Barclays is to pay penalties of £290m to settle claims that it manipulated the interbank lending rate.