Barclays chairman quits over rate-fixing scandal

Barclays chairman Marcus Agius paid the price of “devastating” damage to the bank, resigning yesterday over the rigging of key global interest rates which has sullied London’s image as a financial centre.

I am truly sorry that our customers, clients, employees and shareholders have been let down

The beleaguered bank ann­ounced his departure and promised an independent audit shortly before the markets opened amid questions about the future of its chief executive Bob Diamond and generally about morality in the City.

The manipulation of interest rates, which may turn out to implicate some other international banks, concerned the Libor and Euribor rates that play a key role on global markets, affecting banks, businesses and individuals.

Barclays said that Mr Agius, who has chaired the bank for six years, would remain in his post until a successor was found.

But markets were also focused on whether Mr Diamond, a high-profile and highly paid banker, would keep his job amid widespread calls for him to go.

Markets were also wondering whether the latest banking scandal would result in a radical shake-up of how business is conducted across London’s financial sector, known as the City, amid pressure from high up the political ladder.

“I am truly sorry that our customers, clients, employees and shareholders have been let down,” Mr Agius said in a company statement, less than a week after the bank was fined by British and US regulators for alleged rigging inter-bank rates.

“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,” he said.

The bank insisted that it would establish “a zero tolerance policy for any actions that harm the reputation of the bank”.

Mr Agius is the son of a Maltese trade commissioner who served in London in the pre-war years.

He was originally an engineer at Vickers but turned to banking, obtained an MBA at Harvard and joined Lazard 30 years ago before moving to Barclays.

He is one of the world’s top corporate financiers and comes to Malta on occasion.

He is an avid collector of Maltese antique silver.

Britain’s Business Secretary Vince Cable on Sunday backed calls for a criminal investigation into bankers involved in the scandal.