Barclays Chairman Quits Amid Interest Rate Scandal

by Christopher Freeburn | July 2, 2012 12:46 pm

Barclays (NYSE:BCS[1]) chairman, Marcus Agius, has resigned after the bank conceded that its traders had attempted to influence the London Interbank Offer Rate[2] (LIBOR).

The bank has accepted $453 million in fines from British and American regulators over the manipulation. Other banks, including Citigroup (NYSE:C[3]), Royal Bank of Scotland (NYSE:RBS[4]) and UBS (NYSE:UBS[5]) have been implicated in the scandal, CNBC noted.

The scandal has attracted the attention of politicians, including Prime Minister David Cameron who described it as “extremely serious” and has called for a full investigation.

In his resignation, Agius admitted that the scandal had caused “a devastating blow to Barclays’ reputation” and apologized to the bank’s customers and employees.

The resignation of Agius is unlikely to appease British regulators. Some politicians are also calling for the resignation of CEO Bob Diamond, who formerly headed the investment banking division.

Regulators from the U.K.’s Serious Fraud Office and Financial Services Authority (FSA) are considering criminal charges over the attempted rate manipulations.

The resignation of Agius comes on the heels of news that losses from credit derivatives trading at JPMorgan Chase (NYSE:JPM[6]) may be much larger than previously disclosed, potentially endangering the tenure[7] of its CEO Jamie Dimon.

Endnotes:
  1. BCS: http://studio-5.financialcontent.com/investplace/quote?Symbol=BCS
  2. conceded that its traders had attempted to influence the London Interbank Offer Rate: http://www.cnbc.com/id/48039072
  3. C: http://studio-5.financialcontent.com/investplace/quote?Symbol=C
  4. RBS: http://studio-5.financialcontent.com/investplace/quote?Symbol=RBS
  5. UBS: http://studio-5.financialcontent.com/investplace/quote?Symbol=UBS
  6. JPM: http://studio-5.financialcontent.com/investplace/quote?Symbol=JPM
  7. potentially endangering the tenure: http://investorplace.com/2012/07/jamie-dimon-may-be-in-danger/

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