Rake to preside over audit of Barclays’ business practices

FORMER KPMG International chairman Sir Mike Rake is to preside over a “root and branch” audit of Barclays’ business practices in the wake of the inter-bank lending rate-fixing scandal.

The review of the bank’s “flawed” practices comes as it announced the resignation of its chairman, Marcus Agius.

Last week, Barclays was fined £290m for attempting to manipulate the Libor inter-bank lending rate – actions which the departing Aegis said had “dealt a devastating blow to Barclays’ reputation”.

Barclays’ board has launched an audit of its business practices that will led by an independent third party reporting to Rake and a panel of non-executive directors.

The audit will include a review of past practices that have been revealed as flawed since the credit crisis started, and it will publish a public report of its findings and will produce a new, mandatory code of conduct.

Sir Mike, who joined Barclays as a non-exec in 2008 before serving as its senior independent director, has been appointed at deputy chairman and is a likely successor to Agius.

He is also chairman of BT.

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