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
-
House prices rise 2.9% – will the recovery continue?House prices grew by 2.9% on an annual basis in September. Will Budget policies and ‘higher-for-longer’ rates dent the recovery?
-
Nvidia earnings: what to expectNvidia announces earnings after market close on 20 November. What should investors expect from the semiconductor giant?
