Banking inquiry a whitewash, says MP

 

Two of the Commons' toughest financial inquisitors were excluded from the parliamentary inquiry into the Libor rate-fixing scandal yesterday, prompting claims of a "whitewash".

Neither the Conservative MP Andrea Leadsom, who worked for Barclays for more than a decade and was widely praised for her questioning of Bob Diamond, nor the Labour MP John Mann have been selected to sit on the Parliamentary Commission on Banking Standards.

Their absence from the panel, which will begin its sessions this summer, was met with surprise and anger at Westminster.

Instead the positions went Tory MP Mark Garnier, Labour MPs Andy Love and Pat McFadden and the Liberal Democrat John Thurso. The Commission will be chaired by the Tory MP and Treasury Committee chairman Andrew Tyrie.

Of those on the committee only Mr Garnier has long-term and personal experience of the banking industry.

Some speculated that Ms Leadsom may have been excluded for her forthright comments last week suggesting that George Osborne should apologise for suggesting that his opposite number Ed Balls had been aware of Libor fixing.

Unlike select committees – whose members are chosen by fellow MPs – the commission was chosen by party whips. The commission, which will study professional standards and the culture of the banking sector, and recommend new legislation, will also feature members of the House of Lords. MPs on the commission will be offered the services of a professional QC to cross-examine bankers as part of their inquiry.

A motion to set up the committee has been signed by David Cameron and Mr Osborne, as well as Mr Balls and the Labour leader, Ed Miliband. The terms of reference set out in the motion require the commission to consider and report on the "professional standards and culture of the UK banking sector, taking account of regulatory and competition investigations into the Libor rate-setting process".

It will have the power to appoint a barrister to question witnesses, in an attempt to raise the standards of examination displayed by MP-led select committee inquiries and witnesses will be required to give evidence under oath. This could set a precedent for future Commons inquiries. The commission is required to report on its recommendations for legislation by 18 December and "on other matters as soon as possible thereafter".

Ms Leadsom won widespread praise for her forensic questioning of Mr Diamond earlier this month. Mr Mann also gave the banker a tough time, telling him: "Either you were complicit in what was going on, or you were grossly negligent, or you were grossly incompetent".

The banking review was announced by the Government shortly after it emerged that Barclays and other banks had been involved in manipulating the inter-bank lending rate, Libor.

"The membership of the committee is something for the political parties and they have agreed between themselves who can serve," the Prime Minister's spokesman said.

Mr Mann said the inquiry would be a "whitewash" and that he was going to set up his own. "Both Andrea and I were available for the inquiry and because we are too outspoken we have been blocked," he said. "This exposes the inquiry as a total whitewash with Andrew Tyrie reaching his conclusions in advance of the meetings."

Mr Tyrie said he was pleased that the Commission had the support of all three major parties. "The perpetrators of wrongdoing should be held fully accountable for their actions," he said. "The actions of a few have impugned the reputations of many. Hundreds of thousands of people in financial services work hard, honestly and for the benefit of their customers. They deserve better too."

Arts and Entertainment
Gregg Wallace in Summer's Supermarket Secrets
tv All of this year's 15 contestants have now been named
Arts and Entertainment
Inside the gallery at Frederick Bremer School in Walthamstow
tvSimon Usborne goes behind-the-scenes to watch the latest series
Life and Style
A picture taken on January 12, 2011 shows sex shops at the Paris district of Pigalle.
newsThe industry's trade body issued the moratorium on Friday
News
Winchester College Football (universally known as Winkies) is designed to make athletic skill all but irrelevant
Life...arcane public school games explained
PROMOTED VIDEO
Have you tried new the Independent Digital Edition apps?
News
ebooksAn evocation of the conflict through the eyes of those who lived through it
Arts and Entertainment
Could we see Iain back in the Bake Off tent next week?
tv Contestant teased Newsnight viewers on potential reappearance
Life and Style
Silvia says of her famous creation: 'I never stopped wearing it. Because I like to wear things when they are off the radar'
fashionThe fashion house celebrated fifteen years of the punchy pouch with a weighty tome
News
i100(and it's got nothing to do with the Great British Bake Off)
News
Angelina Jolie with her father Jon Voight
peopleAsked whether he was upset not to be invited, he responded by saying he was busy with the Emmy Awards
News
Bill Kerr has died aged 92
peopleBill Kerr appeared in Hancock’s Half Hour and later worked alongside Spike Milligan and Peter Sellers
News
news It's not just the world that's a mess at the moment...
Sport
footballPremiership preview: All the talking points ahead of this weekend's matches
News
Keira Knightley poses topless for a special September The Photographer's issue of Interview Magazine, out now
people
Voices
The Ukip leader has consistently refused to be drawn on where he would mount an attempt to secure a parliamentary seat
voicesNigel Farage: Those who predicted we would lose momentum heading into the 2015 election are going to have to think again
Arts and Entertainment
Cara Delevingne made her acting debut in Anna Karenina in 2012
film Cara Delevingne 'in talks' to star in Zoolander sequel
News
i100
Sport
Mario Balotelli pictured in his Liverpool shirt for the first time
football
Life and Style
tech
Independent
Travel Shop
the manor
Up to 70% off luxury travel
on city breaks Find out more
santorini
Up to 70% off luxury travel
on chic beach resorts Find out more
sardina foodie
Up to 70% off luxury travel
on country retreats Find out more
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs General

C# Algo-Developer (BDD/TDD, ASP.NET, JavaScript, RX)

£45000 - £69999 per annum + Benefits + Bonus: Harrington Starr: C# Algo-Develo...

Senior Data Scientist (Data Mining, Apache Mahout, Python,R,AI)

£60000 - £70000 per annum + Benefits + Bonus: Harrington Starr: Senior Data Sc...

Data Scientist (SQL,Data mining, data modelling, PHD, AI)

£50000 - £80000 per annum + benefits+bonus+package: Harrington Starr: Data Sci...

Java Developer - 1 year contract

£350 - £400 Per Day: Clearwater People Solutions Ltd: Our client based in Cent...

Day In a Page

Ukraine crisis: The phoney war is over as Russian troops and armour pour across the border

The phoney war is over

Russian troops and armour pour into Ukraine
Potatoes could be off the menu as crop pests threaten UK

Potatoes could be off the menu as crop pests threaten UK

The world’s entire food system is under attack - and Britain is most at risk, according to a new study
Gangnam smile: why the Chinese are flocking to South Korea to buy a new face

Gangnam smile: why the Chinese are flocking to South Korea to buy a new face

Seoul's plastic surgery industry is booming thanks to the popularity of the K-Pop look
From Mozart to Orson Welles: Creative geniuses who peaked too soon

Creative geniuses who peaked too soon

After the death of Sandy Wilson, 90, who wrote his only hit musical in his twenties, John Walsh wonders what it's like to peak too soon and go on to live a life more ordinary
Caught in the crossfire of a cyber Cold War

Caught in the crossfire of a cyber Cold War

Fears are mounting that Vladimir Putin has instructed hackers to target banks like JP Morgan
Salomé's feminine wiles have inspired writers, painters and musicians for 2,000 years

Salomé: A head for seduction

Salomé's feminine wiles have inspired writers, painters and musicians for 2,000 years. Now audiences can meet the Biblical femme fatale in two new stage and screen projects
From Bram Stoker to Stanley Kubrick, the British Library's latest exhibition celebrates all things Gothic

British Library celebrates all things Gothic

Forthcoming exhibition Terror and Wonder: The Gothic Imagination will be the UK's largest ever celebration of Gothic literature
The Hard Rock Café's owners are embroiled in a bitter legal dispute - but is the restaurant chain worth fighting for?

Is the Hard Rock Café worth fighting for?

The restaurant chain's owners are currently embroiled in a bitter legal dispute
Caribbean cuisine is becoming increasingly popular in the UK ... and there's more to it than jerk chicken at carnival

In search of Caribbean soul food

Caribbean cuisine is becoming increasingly popular in the UK ... and there's more to it than jerk chicken at carnival
11 best face powders

11 best face powders

Sweep away shiny skin with our pick of the best pressed and loose powder bases
England vs Norway: Roy Hodgson's hands tied by exploding top flight

Roy Hodgson's hands tied by exploding top flight

Lack of Englishmen at leading Premier League clubs leaves manager hamstrung
Angel Di Maria and Cristiano Ronaldo: A tale of two Manchester United No 7s

Di Maria and Ronaldo: A tale of two Manchester United No 7s

They both inherited the iconic shirt at Old Trafford, but the £59.7m new boy is joining a club in a very different state
Israel-Gaza conflict: No victory for Israel despite weeks of death and devastation

Robert Fisk: No victory for Israel despite weeks of devastation

Palestinians have won: they are still in Gaza, and Hamas is still there
Mary Beard writes character reference for Twitter troll who called her a 'slut'

Unlikely friends: Mary Beard and the troll who called her a ‘filthy old slut’

The Cambridge University classicist even wrote the student a character reference
America’s new apartheid: Prosperous white districts are choosing to break away from black cities and go it alone

America’s new apartheid

Prosperous white districts are choosing to break away from black cities and go it alone