LIBOR (FSA Investigation) Debate

Full Debate: Read Full Debate
Department: HM Treasury

LIBOR (FSA Investigation)

Claire Perry Excerpts
Thursday 28th June 2012

(12 years, 4 months ago)

Commons Chamber
Read Full debate Read Hansard Text Read Debate Ministerial Extracts
George Osborne Portrait Mr Osborne
- Hansard - - - Excerpts

The BBA is concerned about what has happened and has already instituted a review into the operation of LIBOR. I should like to hear its thoughts on that, but we need to look at the regulation of the rate and its independence. LIBOR is a very important rate that is used to set mortgage and loan rates for pretty much everyone in the country, so we want to make sure that what happened never happens again.

Claire Perry Portrait Claire Perry (Devizes) (Con)
- Hansard - -

When I heard about the situation, it made me think that “light touch” should be substituted with “clueless”. I am extremely concerned about the damage to Britain’s international reputation as a world-leading financial centre. Has the Chancellor had any conversations with his international counterparts to keep them apprised of the investigation, and does he think this is happening in other markets?

George Osborne Portrait Mr Osborne
- Hansard - - - Excerpts

The fact of the investigation was something I discussed with Finance Ministers and representatives of other Governments, but I have not spoken with any of them since the FSA report was published yesterday because the issues immediately before us are about Britain and a British bank. As I indicated in my response to my hon. Friend the Member for Bury St Edmunds (Mr Ruffley), however, a number of international banks were potentially involved, such as UBS and Citigroup, which are not British banks and are in part regulated by overseas authorities. The whole FSA investigation is part of a joint international effort with the US Department of Justice and the Securities and Exchange Commission.