Barclays appoints new chairman
Barclays has announced the appointment of Sir David Walker as its new chairman.
He will take over from Marcus Agius who resigned from the role after Barclays was fined £290 million by regulators in the UK and US for manipulating Libor, the interbank lending rate.
The appointment of Sir David, a respected and experienced banker, should help Barclays gain the respect and trust of its customers.
He is a former chairman of Morgan Stanley International and was assistant secretary to the Treasury from 1974 to 1977 and executive director for finance and industry at the Bank of England from 1989 to 1995.
In 2009 he led an independent review of corporate governance in the UK banking industry which recommended that British banks should publish the pay and bonuses of all their top earners.
Sir David’s appointment as chairman will start in November.
Barclays remains without a chief executive following the departure of Bob Diamond, also as a result of the Libor scandal.
Meanwhile, the Governor of the Bank of England, Sir Mervyn King, has called for Libor to be replaced.
He said that it has stopped working effectively since the financial crisis.
Sir Mervyn said: “What’s become apparent is there is no such thing as the interbank borrowing rate.
“The dominant feature in setting interbank borrowing rates is now the credit risk associated with the potential failure of a bank, and that varies from bank to bank.
“So the idea of having a panel to sort out the interbank rate no longer makes sense.”
The UK Treasury is conducting a review into Libor, led by Martin Wheatley, the Financial Services Authority’s Head of Financial Conduct.
It could recommend making Libor-rigging a criminal act.