MARCUS Agius is to step down as chairman of Barclays, the bank confirmed today, in the wake of the rate-rigging scandal.

The bank has also agreed to launch an audit, led by Sir Michael, to review "flawed'' past practices that have been revealed.

The findings of the inquiry will be revealed in a public report and the bank will produce a new, mandatory code of conduct.

Mr Agius said: "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."

He added: "It goes without saying that Barclays will continue to have my wholehearted support in the future."