Skip to main content

Barclays chairman resigns amid rate-fixing scandal

By Jim Boulden, CNN
July 2, 2012 -- Updated 0756 GMT (1556 HKT)
Marcus Agius' resignation follows fine handed to Barclays for trying to manipulate interbank lending rates.
Marcus Agius' resignation follows fine handed to Barclays for trying to manipulate interbank lending rates.
STORY HIGHLIGHTS
  • Barclays was fined $450 million last week by British and U.S. regulators
  • Bank admitted some of its trading desks deliberately under-reported interbank interest rates
  • Chairman Marcus Agius says he will step down when a replacement is found
  • Agius and CEO Bob Diamond face questions from UK lawmakers

London (CNN) -- Barclays on Monday announced the resignation of its chairman, Marcus Agius, in the widening scandal surrounding the bank's manipulation of interbank lending rates in 2008 and 2009.

In a statement to the London Stock Exchange, Agius said the scandal has "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," he added.

Barclays was fined US$450 million last week by British and U.S. regulators after the bank admitted some of its trading desks purposely under-reported its interest rates as part of LIBOR (London interbank Offered Rate) -- an interest rate floor between big banks that is set in London each trading morning.

Authorities are also investigating other banks, with Royal Bank of Scotland (RBS) understood to have fired some of its traders involved in LIBOR, according to British media reports.

Barclays CEO still facing scandal
Barclays under pressure
Record fine imposed on Barclays

Britain's Financial Services Authority on Friday said the law must be tightened to deal with abuses, while Bank of England Governor Mervyn King attacked British banking culture, saying something had gone very wrong with an industry he derided for resorting to "deceitful" methods to make money.

Meanwhile, Agius will stay on as chairman while the board searches for his replacement. Chief Executive Bob Diamond is also facing calls to resign.

Both Diamond and Agius are expected to appear before a UK parliamentary committee later this week to face questions about the saga.

The bank says it will also launch an audit into all of its past business practices and has vowed to make its findings public.

Barclays will also introduce a mandatory code of practice to be applied across the entire bank.

ADVERTISEMENT
Part of complete coverage on
February 6, 2013 -- Updated 1526 GMT (2326 HKT)
Advocates say the exam includes unnecessarily invasive and irrelevant procedures -- like a so-called "two finger" test.
February 6, 2013 -- Updated 0009 GMT (0809 HKT)
Supplies of food, clothing and fuel are running short in Damascus and people are going hungry as the civil war drags on.
February 6, 2013 -- Updated 1801 GMT (0201 HKT)
Supporters of Richard III want a reconstruction of his head to bring a human aspect to a leader portrayed as a murderous villain.
February 5, 2013 -- Updated 1548 GMT (2348 HKT)
Robert Fowler spent 130 days held hostage by the same al Qaeda group that was behind the Algeria massacre. He shares his experience.
February 6, 2013 -- Updated 0507 GMT (1307 HKT)
As "We are the World" plays, a video shows what looks like a nuclear attack on the U.S. Jim Clancy reports on a bizarre video from North Korea.
The relationship is, once again, cold enough to make Obama's much-trumpeted "reset" in Russian-U.S. relations seem thoroughly off the rails.
Ten years on, what do you think the Iraq war has changed in you, and in your country? Send us your thoughts and experiences.
February 5, 2013 -- Updated 1215 GMT (2015 HKT)
Musician Daniela Mercury has sold more than 12 million albums worldwide over a career span of nearly 30 years.
Photojournalist Alison Wright travelled the world to capture its many faces in her latest book, "Face to Face: Portraits of the Human Spirit."
February 6, 2013 -- Updated 0006 GMT (0806 HKT)
Europol claims 380 soccer matches, including top level ones, were fixed - as the scandal widens, CNN's Dan Rivers looks at how it's done.
February 6, 2013 -- Updated 1237 GMT (2037 HKT)
That galaxy far, far away is apparently bigger than first thought. The "Star Wars" franchise will get two spinoff movies, Disney announced.
July 25, 2014 -- Updated 2327 GMT (0727 HKT)
It's an essential part of any trip, an activity we all take part in. Yet almost none of us are any good at it. Souvenir buying is too often an obligatory slog.
ADVERTISEMENT