Reuters: Global Markets: Barclays shares rise as Walker comes in to clean up

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Barclays shares rise as Walker comes in to clean up Aug 10th 2012, 07:47 Tweet Share this Email Print Related News RBS confirms it sacked staff over Libor rigging scandal Fri, Aug 3 2012 HSBC takes $2 billion hit for U.S., UK scandals Mon, Jul 30 2012 Barclays dragged into new probe after Libor blow Fri, Jul 27 2012 UPDATE 5-UK's Lloyds pulled deeper into Libor probe Thu, Jul 26 2012 Nomura CEO quits as insider trading scandal widens Thu, Jul 26 2012 Analysis & Opinion How to take the lies out of Libor Is the U.S. picking on our banks? Related Topics Hot Stocks » Asian Markets » New Barclays chairman Sir David Walker is pictured in an undated handout photo. Credit: Reuters/Barclays/handout LONDON | Fri Aug 10, 2012 3:47am EDT LONDON (Reuters) - Barclays (BARC.L) shares rose on Friday after the bank named City grandee David Walker as its new chairman, moving quickly to fill a void and picking a corporate governance expert to lead a recovery from the UK bank's interest rate rigging scandal. Walker, 72, is a former Bank of England and Treasury official who wrote one of the most significant governance manuals for UK banks and has investment banking experience from 17 years at Morgan Stanley (MS.N). All could be valuable for Barclays's recovery efforts, and see the bank cut pay, improve culture and pick a new CEO who is not afraid to change strategy, analysts said. "This is an important step forward addressing key management gaps in the company," said Mike Trippitt, analyst at Oriel. By 03:20 a.m. EDT Barclays shares were up 1.2 percent, the strongest performer in the European bank index .SX7P, which was down 0.7 percent. Barclays said late on Thursday that Walker would become a director at the start of September and take the chairman's seat two months later. Walker said he would be "fully engaged" in the hunt for a new CEO, and current chairman Marcus Agius told staff he was encouraged by the quality of candidates seen so far. Barclays was fined $453 million in June for manipulating Libor lending rates in a scandal that unearthed deep problems in its relations with regulators. Another key issue for new bosses is the future of its investment bank, which many analysts expect to be shrunk. "His strong regulatory background and preference towards longer deferral of bonuses will be a positive in terms of lowering the cost of equity and improving returns for shareholders," said Andrew Lim, analyst at Espirito Santo. But Lim added that Walker may "rein in Barclays' more ambitious investment banking operations", which could negatively affect returns in a business that is doing well against rivals. (Reporting by Steve Slater; Editing by Helen Massy-Beresford) Related Quotes and News Company Price Related News Tweet this Link this Share this Digg this Email Reprints Comments (0) This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

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