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
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.