2 Jul 2012

Barclays chairman tipped to resign

12:01 pm on 2 July 2012

Barclays chairman Marcus Agius is reportedly expected to resign on Monday over the fixing of inter-bank interest rates. Barclays declined to comment.

Last week, Barclays was hit with a record fine of $US450 million for attempted manipulation of the London interbank offered rate (Libor), which is the rate at which banks lend to each other.

Mr Agius has held the position for 5½ years.

Meanwhile, the Royal Bank of Scotland reportedly sacked four traders for their role in fixing inter-bank interest rates late last year.

RBS also confirmed it's under investigation for its role in the scandal.

The Government says it will hold a review into the setting of benchmark inter-bank interest rates and seek to criminalise rate-fixing.

The review aims to restore trust in the Libor, a reference rate that influences a swathe of other borrowing costs.

Business Minister Vince Cable urged shareholders in British banks to get a stronger grip on the boards and executives responsible for systemic abuse.

Financial Services Authority chairman Adair Turner says significant steps had already been taken to prevent a repeat of the Libor scandal and he did not think such behaviour was taking place now.

But he says the malpractice was not covered by criminal law.