LIBOR (FSA Investigation)

Lord Watson of Wyre Forest Excerpts

Monday 2nd July 2012 Commons Chamber

[Mr Osborne]

I will certainly take a close look at my hon. Friend’s Bill and get back to him on it.

[Mr Tom Watson (West Bromwich East) (Lab)]

The Chancellor said in his statement that he had asked Mr Wheatley whether participation in the setting of LIBOR should become a regulated activity. Does the Chancellor accept that public confidence in the British Bankers Association has completely ruptured, and that for the public it is a question not of whether, but of when, we take that responsibility away from it?

[Mr Osborne]

I completely agree with the hon. Gentleman that confidence in the process of setting LIBOR has been damaged—of course—by these revelations. That is precisely why, if I may say to him, I want to get on with it: that is why I have asked Mr Wheatley to do his report in the next couple of months, not even by the end of the year—so that we have the opportunity in October of amending, just before it becomes law, the Financial Services Bill. The hon. Gentleman is an expert on public inquiries, and I am sure he will agree that a public inquiry would take years to get to that point. Let us get to that point this autumn.