Sir Hector Sants has resigned from Barclays a month after it emerged he had been placed on sick leave for stress and exhaustion.
The former chief executive of the now-defunct Financial Services Authority joined the bank as its head of compliance a year ago.
He was given the job of ensuring the bank operated within the law across the world but was given time off at the beginning of October.
Barclays - like its major competitors - are still paying a high price for past mistakes.
The bank was fined £291m for rigging the Libor interbank lending rate and has set aside just under £4bn for the mis-selling of payment protection insurance (PPI).
Among its other continuing compliance issues is a regulatory inquiry into foreign exchange trading.
The bank's transformation plan - which has cost it hundreds of millions of pounds - is aimed at cleaning up its image to concentrate on becoming the 'go to' bank.
Barclays said: "Hector Sants has been on sick leave since the beginning of October, suffering from stress and exhaustion.
"He has concluded that he will not be able to return to work in the near term. Consequently he has decided to resign from Barclays and not return from sick leave."
Chief executive Antony Jenkins added: "Hector has been a great colleague on the Group Executive Committee.
"Although only with us for 10 months, he has made significant progress towards creating a world class compliance function at Barclays and in improving our relationships with Regulators and Governments.
"I know my colleagues will join me in expressing our appreciation to Hector, as well as wishing him a speedy recovery."
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