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The BBC has been in crisis mode ever since the findings of the Hutton report, which has blamed the prestigious and respected news organisation for the crisis generated by last year's suicide of Nobel Prize-nominated weapons inspector Dr David Kelly, were made public.
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British MPs had been expecting Lord Hutton to level some criticism at Prime Minister Tony Blair and Defence Secretary Geoff Hoon.
Instead, Hutton attacked the BBC in general, and reporter Andrew Gilligan in particular, for a series of failings.
Within hours of the report being read out on Wednesday, BBC chairman Gavyn Davies had resigned, saying, "There is an honourable tradition in British public life. Those charged with authority at the top of an organisation should accept responsibility for what happens in that organisation."
Davies' resignation is expected to increase pressure on the corporation's Director General Greg Dyke to also leave, but his fate will be decided only after the BBC board of governors meets on Thursday morning to discuss these developments.
In his first reaction to the Hutton report, Dyke said, "The BBC does accept that certain key allegations made by Andrew Gilligan were wrong and we apologise for them." He added that the BBC had taken steps to improve editorial procedures.
Prime Minister Blair's former press aide Alastair Campbell has led the call for "several resignations' following the publication of the Hutton inquiry report.
"I no longer work for the government so, in a sense, my view on these matters is no more or less significant than anyone else's," Campbell said on Wednesday.
"But I do feel compelled to say this: If the government faced the level of criticism which today Lord Hutton has directed to the BBC, there would clearly have been resignations by now. Several resignations at several levels.
"The BBC will have to decide for itself what action to take to restore its own integrity and reputation after such severe criticism of the governors, management, senior editorial staff and processes."
Before he resigned, BBC chairman Davies questioned the Hutton findings.
"First, is it clearly possible to reconcile Lord Hutton's bald conclusions on the production of the September 2002 dossier with the balance of evidence that was presented to him during his own inquiry.
"Second, did his verdict on Mr Gilligan's reports take sufficient account of what was said by Dr Kelly on tape to (BBC reporter) Susan Watts?
"Third, did his criticisms of the BBC take sufficient account of the extenuating circumstances which were created by the public attacks on the BBC during and after the war?
"Finally, are his conclusions on restricting the use of unverifiable sources in British journalism based on sound law and, if applied, would they constitute a threat to the freedom of the press in this country?" he asked.
Davies concerns have been echoed by a small number of MPs from the ruling Labour Party.
One of them, Austin Mitchell has accused Hutton of using "buckets of whitewash" to exonerate the government. "I have been fascinated to read the Hutton report", Mitchell said. "Ultimately, it disappoints because it is very one-sided."
