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Libor-scarred Barclays names new chairman

August 9, 2012: 2:54 PM ET

Barclays appointed former Morgan Stanley chairman as its new chairman Thursday.

Barclays, the bank most tarnished by the unfolding scandal over the manipulation of Libor rates, has wrapped up the first step in its quest to track down a new CEO.

Barclays (BCS) named Sir David Walker, a financial and U.K. regulatory industry veteran, to succeed Martin Agius as the bank's chairman. Agius recently told investors that the bank would appoint a chairman before choosing a new CEO.

Agius resigned, and then resumed the chairmanship on an interim basis, after Bob Diamond stepped down as Barclays' CEO last month.

In late June, Barclays agreed to pay $453 million to U.K. and U.S. regulators to settle its role in manipulating Libor, used to set rates on an estimated $10 trillion of loans worldwide, including adjustable-rate mortgages, credit card rates and other small business and consumer loans.

Related: Barclays CEO job may be tough sell

A spokesperson for Barclays declined to comment on the timing of naming a new CEO.

Ahead of his appointment to the chairman role at Barclays, Walker served as a senior adviser to Morgan Stanley (MS), where he also served as chairman. He's also held senior roles at Lloyds Bank, the Bank of England and served at the helm of several U.K. bank regulatory bodies and commissions.

As Walker helps the board of directors choose a new CEO, Agius gave a nod to holding Barclays together.

Related: 'For you ... anything.' Barclays Libor emails paint ugly picture

"[Sir David Walker] will be taking over at a time when Barclays universal banking model is delivering a strong performance in difficult markets," said Agius in a statement.

Walker said his first task, which won't be an easy one, will be to find a new CEO. He officially takes over as chairman on Nov. 1.


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