Barclays Chairman quits following Libor scandal
Marcus Agius, the Chairman of UK banking group Barclays announced his resignation at the weekend, following the revelation last week that the bank had been found guilty of manipulating interbank lending rates.
Marcus Agius, the Chairman of UK banking group Barclays announced his resignation at the weekend, following the revelation last week that the bank had been found guilty of manipulating interbank lending rates.
The bank is to pay a £290m fine to UK and US regulators after it was found attempting to control submissions for the London Interbank Offered Rate (LIBOR) and the Euro Interbank Offered Rate (EURIBOR) to benefit the bank's interest rate derivatives traders. Libor and the Euribor are benchmark reference rates that indicate the interest rate that banks charge when lending to each other.
Agius said that he is "truly sorry" that the bank's customers, clients, employees and shareholders have been let down.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
"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," Agius said.
Barclays is now undergoing an audit of its business practices, which includes: a review of past practices that are thought to be "flawed" over the past few years; a published report of its findings; and a new mandatory code of conduct.
"This exercise will be part of a broader programme of activity intended to restore Barclays reputation and we will establish a zero tolerance policy for any actions that harm the reputation of the bank," Agius said.
The issue has prompted calls over the last few days from MPs for Chief Executive Officer Bob Diamond to step down and for those involved to face criminal charges. However, Diamond announced late last week that he would be staying at the group.
BC
Sign up to Money Morning
Our team, led by award winning editors, is dedicated to delivering you the top news, analysis, and guides to help you manage your money, grow your investments and build wealth.
-
8 of the best properties for sale with smallholdings
Eight of the best properties for sale with smallholdings – from a 17th-century farmhouse in the Deben Valley, Suffolk, to a property set in 36 acres on the slopes of the Preseli Hills, Pembrokeshire
By Natasha Langan Published
-
US election – is the Trump Trade back?
The US election is around the corner. How does Trump influence US markets?
By Alex Rankine Published