Barclays shares rose by more than 5% to the top of London's leading shares index as investors responded to Marcus Agius's decision to resign as chairman.
The stock, plummeted last week after Barclays was fined £290 million for rigging a key interbank lending rate, settled at around 8.1p higher at 170.8p on Monday morning.
The bank saw around £3 billion wiped from its market value last Wednesday after the Financial Standards Authority published its report into the Libor-fixing affair, fuelling fears over the cost of the scandal.
Barclays was fined by UK and US regulators for manipulating the Libor, the rate at which banks lend to each other last week.
Other banking stocks were ahead after fluctuating throughout the morning: Royal Bank of Scotland up 0.4%, HSBC ahead 2% and Lloyds Banking Group rose by 2%.
Ian Gordon, analyst at brokers Investec, urged investors to back Barclays chief executive Bob Diamond and take "full advantage" of Barclays' recent share price under-performance.
He said "Bob is going nowhere" and added that it was still unclear whether Barclays "successfully" manipulated the Libor.
The bank's chairman quit after the scandal took hold of the British banking industry last week, following the record fine on Tuesday.
Agius' resignation comes after signs of shareholder moves to replace him from the role. He is due to face MPs on the Treasury Select Committee on Thursday - a hearing that is expected to go ahead irrespective of his decision to quit.
Agius, who was chairman for six years, said: "This has been a period of unprecedented stress and turmoil for the banking industry in particular and for the wider world economy in general."
The bank said Mr Agius will remain in post until an "orderly succession is assured" and added Barclays non-executive director Sir Michael Rake has been appointed deputy chairman.
Mr Agius said: "Last week's events - evidencing as they do unacceptable standards of behaviour within the bank - have dealt a devastating blow to Barclays reputation.
"As chairman, I am the ultimate guardian of the bank's reputation. Accordingly, the buck stops with me and I must acknowledge responsibility by standing aside."
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