Barclays Chair Resigns Over Rate-Fixing Scandal
Company promises 'root and branch' investigation
By Kevin Spak, Newser User
Posted Jul 2, 2012 8:27 AM CDT
British bank Barclays chairman Marcus Agius listens during a session on January 28, 2009 at the World Economic Forum in Davos.   (Getty Images/AFP)

(Newser) – Barclays Chairman Marcus Agius resigned today in penance for the company's $453 million settlement in an interest rate manipulation probe. The scandal "dealt a devastating blow to Barclays' reputation," Agius said. "As chairman, I am the ultimate guardian of the bank's reputation." The bank also announced an internal investigation into the matter, promising a "root and branch review of all past practices that have been revealed as flawed," the Wall Street Journal reports.

As part of the settlement, which was negotiated with the UK Financial Services Authority and the US Futures Trading Commission and Department of Justice, Barclays confessed that its traders and execs did indeed try to manipulate the Libor (London Interbank Offered Rate), which is linked to more than $800 trillion in securities. It's unclear if the investigation, or Agius' departure, will be enough to save CEO Robert Diamond.

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Jul 2, 2012 12:02 PM CDT
Settle for nothing less than a hefty prison sentence for these crooks.
Jul 2, 2012 12:01 PM CDT
Frank Raines, and Barney Frank, and Maxine Waters... all democrats and all helped protect Fannie & Freddie before the collapse. The republicans tried over and over to regulate them, all attempts were blocked and we all know how that story ends. Oh ya and Obama allowed Freddie & Fannie to be exempt from regulation, why? Before you start the partisan crap, In the House, 155 Democrats and 207 Republicans voted? for the measure to repeal Glass Steagall. "Too big to fail" - Barrack Obama. Even corrupt Bill Clinton realizes they need to be regulated, he will admit his party is a shill for them.
Jul 2, 2012 9:56 AM CDT
Hey now Diamond can't be that bad he's hosting a very expensive fund raiser for Mitt.