By Simon Miller

The British Bankers' Association (BBA) has said it was "shocked" over the news that Barclays has been fined for misconduct in relation to the London Interbank Offered Rate (Libor) and the Euro Interbank Offered Rate (Euribor).

In a statement, the BBA said banks that contribute to the Libor rate "must meet the necessary obligations to their regulators".

It continued: "The BBA has proactively co-operated with the authorities at every stage and will continue to work with the regulatory investigations into Libor, submitting information and making staff available for interview."

The BBA pointed out that the current Libor review had been underway since March this year and as part of the review, the association would be asking the authorities to "consider in what manner the Libor setting mechanism should be regulated in the future".

Yesterday , Barclays was fined the largest ever penalty in the UK of £59.5m by the Financial Services Authority and the US Commodity Futures Trading Commission handed the bank a $200m (£128m) penalty for "attempted manipulation of and false reporting concerning Libor and Euribor benchmark interest rates", while the bank agreed to pay a $160m penalty as part of an agreement with the US Justice Department.

Chief executive Bob Diamond and three other senior executives returned their 2012 bonuses as a result but today Diamond has faced calls for his resignation.

Former Liberal Democrat Treasury spokesman Lord Oakeshott described the bank as a "casino that was rigging the wheels and loading the dice" and added: "If Bob Diamond had a scintilla of shame, he would resign."

Meanwhile, former City minister Lord Myners commented: "This is the most corrosive failure of moral behaviour I have seen in a major UK financial institution in my career."

Speaking in the House of Commons, the chancellor George Osborne noted that other banks, including state-owned RBS, were being investigated and added: "The FSA is continuing to work with its counterparts overseas and with other authorities in the UK. The investigations concern a number of institutions both based in the UK and overseas.

"But it is already clear that the FSA’s investigation demonstrates systematic failures at the heart of the financial system at the time."

He added the FSA and the Serious Fraud Office were in ongoing discussions about the evidence and continued: "As far as the Chief Executive of Barclays is concerned, he has some very serious questions to answer today. What did he know and when did he know it?"

"Who in the Barclays management was involved and who therefore should pay the price? It is quite right that the Treasury Select Committee has asked him to appear urgently to account for himself and for his bank. We all want to hear his answers," Osborne said.

Earlier today, the head of the Treasury Select Committee, Andrew Tyrie said the committee was to summon Diamond to explain what had happened.

Barclays' shares are down 10.69% at 175.10 as of 13.40 BST.

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