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Sir David Walker To Succeed Marcus Agius At Barclays Following Libor Rate-Fixing Scandal

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Sir David Walker - the City grandee who oversaw a review into bank governance for Gordon Brown - was unveiled as the new chairman of Barclays on Thursday.

Sir David, a former deputy governor of the Bank of England, will join as non-executive director from 1 September before succeeding Marcus Agius as chairman from 1 November, Barclays said.

sir david walker

Sir David Walker replaced Marcus Agius as the chairman of the bank

Agius announced his intention to resign in the wake of the Libor-rigging scandal that left Barclays' reputation in tatters and sent shockwaves through the entire industry.

Sir David, a former chairman of Morgan Stanley International, will be tasked with steering the bank through the most turbulent period in its history, including appointing a new chief executive after the rate-fixing affair claimed the scalp of Bob Diamond.

Sir David said: "The UK needs a strong financial services sector and Barclays has a crucial role to play in ensuring that this country has a successful, well-governed banking industry."

Sir David, 72, who will receive £750,000 a year for the role, said his "immediate priority" was finding a new chief executive.

Barclays was plunged into chaos when it was fined £290m by UK and US regulators for manipulating Libor, the interbank lending rate that affects mortgages and loans.

As well as triggering the departure of Agius, Diamond and chief operating office Jerry del Missier, the affair set off a fierce debate in Westminster over banking ethics and a criminal investigation was launched by the Serious Fraud Office.

At least 15 other institutions, including Royal Bank of Scotland, are being investigated for Libor manipulation and face hefty fines and legal costs if misconduct is found.

Sir David will join the bank as it fights to restore its reputation - it recently launched its own internal review into the culture at Barclays in light of the disclosures surrounding Libor.

Agius, who took on the temporary role of executive chairman after Diamond's immediate exit, said: "(Sir David) will be taking over at a time when Barclays' universal banking model is delivering a strong performance in difficult markets. I wish him every success as he leads Barclays at this important time."

In the Walker Review, published in November 2009, Sir David called for banks and other financial institutions to publish the number of staff paid more than £1m.

He called on lenders to disclose details on the total pay - including salary, pension and both received and deferred bonuses - of employees outside the boardroom for the first time.

The report was commissioned by the then chancellor Alistair Darling amid concerns that unrestrained and short-term pay awards were directly linked to the excessive risk-taking at banks in the lead up to the financial crisis.

Cambridge University graduate Sir David also co-led the independent review of the report that the FSA produced into the failure of Royal Bank of Scotland.

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