Calls grow for banking inquiry into “shoddy” behaviour

The government is to order a review of the workings of Libor – interbank lending rates – after several banks including Barclays were caught up in the controversial abuse of Libor – interbank lending rate.

Following the revelations of a series of banking scandals, the deputy prime minister, Ed Miliband, called for a public inquiry into the customs and practices of the banking industry.

Barclays were fined £290 million for attempting to manipulate the bank’s borrowing rate and several other international banks are also under investigation.

Kenneth Clarke, the justice secretary, also sided with Ed Miliband urging that the guilty bankers be brought to trial.

Sir Mervyn King, the Bank of England governor, demanded “real change in culture” as Britain’s lenders were left stunned by the controversy.

Miliband pushed for a year-long investigation to uncover the banker’s illicit code of conduct, unknown to the public after the Financial Services Authority (FSA) uncovered “serious failing” in their procedures to sell financial products to small businesses.

Speaking to the BBC Radio 4 Today programme, Kenneth Clarke called for criminal investigations and prosecutions where financial crimes were committed. He said: “This is still being investigated, no doubt, but once these investigations are complete, if they have committed criminal offences, they should be brought to trial.”

Rajeeb Gurung