Sir David was also an executive director of the Bank of England and chairman of Lloyds bank.
He gets his new position as the Chairman of Barclays amid the Libor scandal that resulted in a fine of 250 million Euros for rigging the Libor rate.
The scandal led to the resignation some key executive positions including the chief executive Bob Diamond and Chairman Marcus Agius.
Mr. Agius agreed to stay on as executive chairman, while the Bank still remains without a chief executive after Mr. Diamond’s departure.
Sir Michael Rake, the deputy chairman of Barclays, had been considered to replace Marcus Agius as the new Chairman, but he ruled himself out of the running to become the bank’s chairman.
Sir David will become a non-executive director of Barclays on 1 September and take up his role as chairman from 1 November, earning an annual income of 750,000 Euros.