Last night David Cameron welcomed the waiving of the handout. His spokesman said: "The decision to forgo the bonus is a sign that they understand public concerns and that there's a need for a change in the culture of banking." Mr Agius also told MPs that Bank of England governor Sir Mervyn King had made it clear to the bank that Mr Diamond had lost the confidence of City regulators. Mr Diamond resigned last week after Barclays was fined £290million following investigations into rate-fixing. Mr Agius also resigned but reversed his decision when Mr Diamond stood down. Mr Agius told MPs he would leave once a new Barclays boss was recruited. The hearing painted a picture of a chequered history between the banking regulator, the Financial Services Authority and Barclays, leading to the Libor scandal. But Mr Diamond had given a different account, according to MPs.