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Barclays chairman resigns

Barclays chairman resigns

Category: Banking

Updated: 11/07/2012
First Published: 02/07/2012

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

The chairman of Barclays, Marcus Agius, has resigned amid the rate-fixing scandal which saw the bank being fined a record £290 million by the Financial Services Authority (FSA).

In a statement, Mr Agius said that he was "truly sorry" for the scandal and that "ultimately the buck stops with me and I must acknowledge responsibility by standing aside".

Mr Agius is due to give evidence into the rate-fixing episode to MPs at the Treasury Committee this Wednesday, with the bank's chief executive, Bob Diamond, set to appear on Thursday.

An investigation by the FSA found that during 2005 and 2008 Barclays staff lied about its inter-bank lending rates. Traders rigged rates to give other banks the impression that the bank was a better lending risk than it actually was and in turn boost profits.

Following the fallout of the scandal, which has rocked the banking sector, the bank has stated that a full independent audit of its business practices will be carried out along with a 'root and branch review' of its previous conduct.

A full public report and reviewed code of conduct will be issued by the bank, with a zero-tolerance policy regarding any form of misconduct.

It has been said that Mr Agius' resignation could potentially deflect some of the pressure off Mr Diamond, who has also faced calls from MPs and Barclays investors to resign. Whilst Mr Diamond has not confirmed that he will be standing down, he said that Mr Agius' decision "deserved all of our respect" and welcomed the plans for an independent audit.

"I am committed to ensuring that the recommendations that from this review are implemented, in full as part of a broader programme to continue to build a culture that all of those with a stake in Barclays can be proud of," he said.

Sir Michael Rake, currently an independent director at Barclays, has been appointed as deputy chairman in the wake of Mr Agius' resignation and is widely believed to be the most likely successor.

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