Barclays chairman resigns after banking scandal

THE rate-rigging scandal claimed its first scalp today as Barclays confirmed its chairman Marcus Agius is to step down.

Mr Agius, who was chairman for six years, said: “This has been a period of unprecedented stress and turmoil for the banking industry in particular and for the wider world economy in general.”

Mr Agius’ resignation came after Barclays was fined £290 million by UK and US regulators for manipulating the Libor, the rate at which banks lend to each other.

The bank said Mr Agius will remain in post until an “orderly succession is assured” and added Barclays non-executive director Sir Michael Rake has been appointed deputy chairman.

Mr Agius added: “I am truly sorry that our customers, clients, employees and shareholders have been let down. Barclays is full of hard-working, talented individuals whose integrity is not in question.”

The bank has also agreed to launch an audit, led by Sir Michael, to review “flawed” past practices.

The findings of the inquiry will be revealed in a public report and Barclays will produce a new, mandatory code of conduct.

Barclays chief executive Bob Diamond said Mr Agius’s decision “deserves all of our respect”.

He said: “He has been a thoughtful and supportive colleague to me in all of my roles – especially since I became chief executive last year – and for this I will always be grateful.”

He added: “I welcome the board’s undertaking of an independent, third-party audit of our business practices.

“I am committed to ensuring that the recommendations from this review are implemented in full.”