They told him, "Sir Derek, we are so proud to have you here."

Sir Derek, however, sat tight, believing that he should not be blamed for the £215m fraud perpetrated against the company.

The City hated it, the shares tanked, and Sir Derek was forced out.

Sir Derek will resist pressure from some shareholders to resign in the belief that this is largely a minority view.

Sir Derek is expected to give further details of the progress of negotiations at today's shareholders' meeting.

Sir Derek said last night that he had 'glanced' at the Hill Samuel plan and was interested to see how it works out.

Sir Derek was diagnosed with hydrocephalus in 2000.

Trustees representing substantial family interests have written to Sir Derek asking for the board to be replaced or supplemented by new directors.

But without fanfare, the firm confirmed yesterday that Sir Derek has resigned.

Sir Derek came under fire from several shareholders.