Sir David Walker, who oversaw a review into bank governance for former UK Prime Minister Gordon Brown, has been unveiled as the new chairman of Barclays.

Sir David, a former deputy governor of the Bank of England, will join as non-executive director from September 1 before succeeding Marcus Agius as chairman from November 1, Barclays said last night.

Mr Agius announced his resignation after the Libor-rigging scandal that left Barclays’ reputation in tatters and sent shockwaves throughout the industry.

Sir David, a former chairman of Morgan Stanley International, will be tasked with steering the bank through the most turbulent period in its history, including appointing a new chief executive after the rate-fixing affair claimed the scalp of Bob Diamond.

Sir David said: “The UK needs a strong financial services sector and Barclays has a crucial role to play in ensuring that this country has a successful, well-governed banking industry.”

Sir David, 72, who will receive £750,000 (€953,000) a year for the role, said his “immediate priority” was finding a new chief executive.

Barclays was plunged into chaos when it was fined £290 million (€369 million) by UK and US regulators for manipulating Libor, the inter-bank lending rate that affects mortgages and loans.

As well as triggering the departure of Mr Agius, Mr Diamond and chief operating office Jerry del Missier, the affair set off a fierce debate in Westminster over banking ethics and a criminal investigation was launched by the Serious Fraud Office.

At least 15 other institutions, including Royal Bank of Scotland are being investigated for Libor manipulation and face hefty fines and legal costs if misconduct is found.

Sir David will join the bank as it fights to restore its reputation – it recently launched its own internal review into the culture at Barclays in light of the disclosures surrounding Libor.