Barclays said its Chairman Marcus Agius has resigned following the bank being slapped with 290 million pounds (USD 451 million) fine by the US and the UK authorities to settle the charges of manipulating global benchmark lending rates.
Agius, who served as the Barclays Chairman for the past six years, would stay in his position until a succession plan is in place. Besides, Michael Rake has been appointed Deputy Chairman. "But last week's events evidencing as they do unacceptable standards of behaviour within the bank 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," Agius said in a statement.
"I am truly sorry that our customers, clients, employees and shareholders have been let down," he added. The bank said it would launch an audit of its business practices, led by Rake and a panel of non-executive Directors. The audit will undertake "a root and branch review of all of the past practices that have been revealed as flawed since the credit crisis started and identify implications for our
Meanwhile, Barclays said it would begin the search for a successor both from within the existing Board members and from outside under the leadership of John Sunderland. Last week, Barclays had agreed to pay 290 million pounds worth penalties to the US and the UK authorities towards settling charges of attempting to manipulating Libor and Euribor rates, the global benchmark rates for lending.
The regulator had pointed out that Barclays' senior management and multiple traders were involved in the matter and that they also coordinated with traders at other banks to make false reports concerning both benchmark interest rates to benefit derivatives trading positions. The information was used in determining the London interbank offered rate, Libor, and Euribor, which influence
many other interest rates.
Libor is based on rate submissions from a relatively small and select panel of major banks, including Barclays, and is calculated and published daily for several different currencies by the British Banker's Association (BBA). Generally, it reflects the cost of borrowing unsecured funds in the London interbank market.
Euribor, also calculated in a similar manner,measures the cost of borrowing in the Economic and Monetary Union of the European Union.
Footwear major Woodland, owned by the Aero Group, is looking to re-position its sub-brand 'Woods' in the luxury footwear segment, focusing primarily on women's footwear, a top company official said Friday.
Global ratings agency Standard & Poor's said its outlook on India remained negative and there was a one-in-three likelihood of a downgrade within the next 12 months.
US industrial production, an indicator of the output of mines, factories and utilities, dropped 0.5 percent in April, US Federal Reserve reported.
Two Indian IT firms are feeling the heat of the recent $ 45 million global ATM heist.
Pleading guilty to 'felony charges' relating distribution of adulterated drugs made at two India units, the US subsidiary of Ranbaxy agreed to pay USD 500 million.
from Hindustan Times
An Indian-origin board member of the influential UK India Business Council said he is rethinking the role of off-shore tax havens in the current economic climate.
Mukesh Ambani has kept his annual salary capped at Rs 15 crore for the fifth year in a row, while foregoing nearly Rs 24 crore from the remuneration approved for him.