[ by Howard Haykin ] Barclays Plc, Britain’s 2nd-largest bank, may have to look outside to replace CEO Robert Diamond Jr., who resigned today after the bank paid $455 million to settle claims that it tried to manipulate the London Interbank Offered Rate.  Yet, though political pressure may bar the appointment of an internal replace, the challenge Barclays faces is not small:

"It’s going to be very difficult to find a candidate that ticks the boxes.  There are very few internal candidates and if you look externally, what is Barclays offering? A huge amount of responsibility and scrutiny over pay at a bank with no clear contingency plan." -- Stephane Rambosson, managing partner at executive search firm Veni Partners in London.

Emergency Exit. Unfortunately, the bank was not planning on having to fill Mr. Diamond's spot at a drop of the hat; for this purpose, chairman Marcus Agius, 65, who has also resigned following the scandal, will remain at the firm to oversee the search for a new CEO successor before leaving.  Industry members were not impressed:

"Companies should have a clear succession planning strategy for all senior lead.  Failing to do so results in the dilemma that Barclays faces." -- Neil Owen, Global Practice Director at Robert Half Financial Services, a London- based recruitment firm.

Who's Left at the Top. Even if the bank could not find an outside successor to Mr. Diamond to assume the helm, the pickings would be slim: after the retirement of Mr. Agius and COO Jerry del Missier who ran the investment bank, securities unit head Rich Ricci remains among Mr. Diamond's former senior deputies.  Although, Mr. Ricci, 48, who currently heads the investment bank certainly understands how the bank works, he could be seen to be too close to the unit involved, according to analyst Simon Willis, an analyst at Daniel Stewart Securities Plc (DAN) in London. Industry Picks. Outside the firm, Bill Winters, 50, the former co-CEO of JPMorgan Chase's investment bank and a member of the government-sponsored Independent Commission on Banking would be ideal for the CEO position, said Cormac Leech, an analyst at Liberum Capital Ltd. in London. Winters, who has started an asset management firm, declined to comment. In addition, Royal Bank of Scotland Group Plc CEO Stephen Hester "is highly regarded and if offered the Barclays CEO role, may well take it since it would offer a greater chance of bonus potential than state-run RBS," according to Andrew Lim at Espirito Santo Investment Bank wrote in a note to investors. Firm Pick. Within the firm, Antony Jenkins, the current head of consumer banking is the favorite choice, bookmaker Paddy Power Plc said in an e-mailed statement.  Considering everything, Mr. Jenkins should not be dismissed, Mr. Lim said: Mr. Jenkins’s "lack of investment banking expertise may be overlooked by investors given that such experience is not exactly a positive right now." For further details, go to [Bloomberg, 7/3/12].