Member Article

Full enquiry into banking sector launched by PM

The Prime Minister has announced plans for a full parliamentary review of the banking sector following the Barclays interbank lending scandal.

David Cameron’s comments follow news that the Serious Fraud Office is considering bringing criminal charges against the bank.

Barclays have also announced a “root and branch review” of internal practices, after receiving a fine of £290 million.

Commenting on the enquiry, Mr Cameron said: “This committee will be able to take evidence under oath, it will have full access to papers and officials and ministers including ministers and special advisers from the last government.”

The review, which will be headed by the chairman of the Treasury Committee Andrew Tyrie, aims to ensure that the UK had the “toughest and most transparent rules of any major financial sector”.

However, Labour leader Ed Miliband believes that the review does not go far enough, and made calls for an enquiry independent of both bankers and politicians.

The Serious Fraud Office now working closely with the Financial Services Authority, to consider next steps in the proceedings.

Barclays chief executive Bob Diamond has pledged to “get to the bottom” of what happen and resolve it, amid calls for him to resign. Mr Diamond was head of Barclays investment bank Barcap during the crucial period.

Deputy Prime Minister Nick Clegg told the BBC: “We need people in [banking] who take responsibility when things go wrong, not just take the big bucks when things go right.”

Bob Diamond will now appear before MPs on the Treasury Committee on Wednesday, and expected to be posed with some difficult questions. His appearance will be followed by former chairman Marcus Aigus, who today (Monday) confirmed his resignation in the wake of the revelations.

Barclays have already launched an audit of its own business practices, conducted by an independent body. They have already promised to launch a “root and branch review” of flawed past practices, a public report of the audit’s findings and a new mandatory code of conduct for all staff.

This was posted in Bdaily's Members' News section by Ruth Mitchell .