Barclays Chair Resigns Over Rate-Fixing Scandal

Company promises 'root and branch' investigation

By Kevin Spak,  Newser Staff

Posted Jul 2, 2012 8:27 AM CDT

(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.

British bank Barclays chairman Marcus Agius listens during a session on January 28, 2009 at the World Economic Forum in Davos.   (Getty Images/AFP)
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