(NEWS) Barclays Chairman Agius Steps Down

Marcus Agius confirms his resignation as chairman of Barclays bank, as the row over the rate-fixing scandal intensifies.

UK, Monday 02 July 2012

Barclays group chairman Marcus Agius has confirmed his resignation from the bank's board, after saying that "the buck stops with me".

In his resignation letter Mr Agius said: "It has been my privilege to serve as Barclays chairman for the past six years.
"This has been a period of unprecedented stress and turmoil for the banking industry in particular and for the wider world economy in general.
"But last week's events- evidencing as they do unacceptable standards of behaviour within the bank have 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."

Mr Diamond is set to be questioned by MPs over the scandal

The development comes after the lender was fined a record £290m by regulators in the United States and Britain over the manipulation of the London interbank lending rate, known as Libor, and its equivalent in Europe - Euribor.
The bank's chief executive Bob Diamond is due to be questioned by MPs about the affair on Wednesday.

Barclays said Mr Agius will remain in post until an "orderly succession is assured" and his departure is believed to secure the position of Mr Diamond.
Sky's City editor Mark Kleinman said: "That is because the Financial Services Authority would not allow the simultaneous exit of the chairman and chief executive of a major bank like Barclays."
The bank also confirmed that Sir Michael Rake, the heavyweight chairman of BT, has been appointed deputy chairman of Barclays.

Amid the chairman's resignation, pressure still remains on Mr Diamond and his alleged role in the Libor scandal.
Conservative peer Baroness Wheatcroft told Sky News: “I don’t think this solves the problem and Marcus Agius should not be carrying the can for Bob Diamond.
Kleinman said the Barclays board is set to commission an independent inquiry into events at the bank following Mr Agius' resignation.

Kleinman said: "Board members are throwing their support behind the idea of a probe of what one shareholder described to me last week as Barclays' 'Wild West culture'.
Baroness Wheatcroft added: "Those within the bank probably have a pretty good idea of what needs to be done.

"They all have got to change the way they behave."