Barclays chairman resigns amid scandal
Agius takes responsibility for rate-fixing by traders and says the bank's reputation has taken a serious blow.
Barclays (BCS) chairman Marcus Agius resigned Monday in the middle of the bank's rate-fixing scandal.
Agius stepped up and said, "The buck stops with me," saying the scandal has dealt a "devastating blow" to the reputation of the bank.
According to Reuters, the news does not take any pressure off CEO Bob Diamond. British Labour Party politician John Mann says Diamond must resign. "He's got to go. There is no role for people like him if banking is to be trusted again in this country and if British banking is to restore its tarnished reputation in the world."
Last week, the The Associated Press reported that Barclays had been fined $453 million for rate fixing after emails were made public showing very clearly that bank employees knew they were doing wrong.
Barclays was fined for manipulating the London Interbank Offered Rate (Libor) between 2005 and 2009. The Libor is calculated daily by the British Bankers' Association, based on lending rate figures submitted by global banks. However, some members of Barclays staff adjusted those figures to boost profits.
According to the AP story, one trader wrote, "As always, any help wd be greatly appreciated."
"I am going 90 altho 91 is what I should be posting," came the reply.
The trader responded, "When I retire and write a book about this business your name will be written in golden letters."
"I would prefer this not be in any book!" came the answer.
While understandable, the email author's desire for privacy turned out to be remarkably naive, as the email is now being shared around the world. Even Prime Minister David Cameron described the situation as "extremely serious."
Whether Diamond will keep his job remains to be seen. Agius released a statement saying: "Last week's events -- evidencing as they do unacceptable standards of behavior within the bank -- have dealt a devastating blow to Barclays' reputation. . . . The buck stops with me, and I must acknowledge responsibility by standing aside. I am truly sorry that our customers, clients, employees and shareholders have been let down."
More from Benzinga
- Dell Acquisition of Quest Software Confirmed
- Did Social Media Chatter Predict the Rally in KB Home?
- Crude Just Rallied 9%, What Stocks Could Benefit?
If they weed out all the crooks, last person out turn off the lights.
MORE ON MSN MONEY
Copyright © 2013 Microsoft. All rights reserved.
Quotes are real-time for NASDAQ, NYSE and AMEX. See delay times for other exchanges.
Fundamental company data and historical chart data provided by Thomson Reuters (click for restrictions). Real-time quotes provided by BATS Exchange. Real-time index quotes and delayed quotes supplied by Interactive Data Real-Time Services. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by SIX Financial Information.
When it comes to efficiency gains, a watt saved is a watt earned.
VIDEO ON MSN MONEY
Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.
Contributors include professional investors and journalists affiliated with MSN Money.
Follow us on Twitter @topstocksmsn.