The Government is still facing calls for a judge-led inquiry into rate fixing at British banks despite Barclays boss Bob Diamond's shock resignation.
Chancellor George Osborne again tried to quash demands for a full-scale probe into the latest scandal to hit the financial sector following Mr Diamond's announcement .
Speaking to Sky News, he warned Labour to stop "political point scoring" and insisted the parliamentary review already set up will be a quicker and better way of handling the row.
The review, to be conducted by Treasury Select Committee chairman Andrew Tyrie, will investigate "transparency, conflicts of interest, culture and the professional standards" in the banking industry.
But Labour leader Ed Miliband, who had called for Mr Diamond to go from last week, is keeping up the pressure.
Following the resignation on Tuesday morning, Mr Miliband said: "This was necessary and right. It was clear Bob Diamond was not the man to lead the change that Barclays needed.
"But this is about more than one man - this is about the culture and practices of the entire banking system, which is why we need an independent, open, judge-led public inquiry."
The Opposition has tabled an amendment in the House of Lords calling for a public inquiry into banking culture and practices and a vote is due on Tuesday evening.
If the Government loses, it will make it very hard to ignore the demands and proceed with a parliamentary inquiry as planned - and will be another victory for Labour.
Mr Osborne, who had earlier only said Mr Diamond had "serious questions to answer" about inter-bank lending rate fixing at his bank, agreed had had to go but is refusing to back down over the probe.
"I think Bob Diamond has made the right decision for Barclays and for the country because we need our banks focused on lending to the economy, not on the scandals of the past," he said.
"I hope this could be the first step towards a new culture of responsibility in British banking which is what the British public very much wants to see."
However, he defended the decision to have a parliamentary review instead of a full inquiry, insisting this means work can start next week and "give us some answers by the end of the year".
"I would urge all the political parties to stop the point scoring and get behind the inquiry that can get under way right now and find the answers that we want," he said.
The Chancellor was phoned by the Barclays chairman Marcus Agius on Monday night and told Mr Diamond was resigning with immediate effect.
The move comes days after Barclays was fined a record £290m for attempting to manipulate the inter-bank lending rate known as the Libor.
Mr Diamond will still appear before the Treasury Select Committee on Wednesday to answer questions about the scandal, which happened when he was head of the bank's investment arm.
He is now expected to come under intense pressure over his severance package and pension pot, with calls already mounting for any pay-off to be blocked.
Labour MP John Mann, a committee member, said: "This bank was rotten to its core and he was the man in charge. He should get no pay-off, in fact he should be repaying the bonuses that he and his bank fiddled."
Lib Dem peer Lord Oakeshott, who had led calls for the banker to quit, added: "Bob Diamond's departure is a great day for democracy. He is the symbol of the gambling and greed we must root out of our banking system."
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