Barclays: Mervyn King denies he forced Diamond to quit

MPs have been questioning the Governor of the Bank of England in the wake of the rate rigging scandal at Barclays.

Sir Mervyn King told the Commons Treasury Select Committee that the board of Barclays had been in a "state of denial" despite warnings from the city watchdog.

MPs also saw emails which appear to show a close relationship between the former Barclays boss and the Deputy governor of the Bank of England.

The BBC's business editor, Robert Peston, reports.