Last
week, Barclays (NYSE:BCS), a leading British bank, agreed to pay $450mn, to American and
British authorities, on settlement of charges for manipulating key interest
rates for its own benefit. The business was facing increasing pressure from its
shareholders, general public and politicians to take action. This week, on
Monday, the bank’s Chairman Marcus Agius
resigned.
------------------------------------------------------------
------------------------------------------------------------
------------------------------------------------------------
------------------------------------------------------------
Commenting
on the events, Mr. Agius said in a statement, “Last week’s events 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. Michael
Rake, an independent director of the bank’s board and former chairman of KPMG,
will function as a deputy chairman until a new appointment is made.
The
Barclay’s case has opened a Pandora’s Box. Investigations are now being carried
out as to how some big banks influence borrowing costs for consumers. Barclays
itself is doing an independent internal audit of its business activities which
would focus on rate manipulation and its impact. The bank will then devise a
new code of practice in the light of the audit.
Mr
Agius is a well known figure in the global banking sector. He is also the
honorary chairman of British Bankers’ Association, the organization that
oversees London Interbank Offered Rate (Libor).
your comments and feedback are always appreciated
sarfarazis@gmail.com
your comments and feedback are always appreciated
sarfarazis@gmail.com
