Professional Standards in the Banking Industry

James Morris Excerpts

Thursday 5th July 2012 Commons Chamber

[Ed Balls]

I will give way in a moment.

We need a change not just in laws and practices, but in ethics, culture and responsibility. We need a lasting consensus for the future. Today, in the House, we have a very serious task ahead of us: we have to decide how best that change can be achieved. The way in which we respond will have long-term consequences for the future of banking, for our economy, and also—I say this to Members on both sides of the House—for public trust in this Parliament. We all have a responsibility to get this right together.

[James Morris (Halesowen and Rowley Regis) (Con)]

Will the right hon. Gentleman cast his mind back to the time when he was the City Minister in the last Government? What action did he take to review the regulatory situation, and did he take any action against the manipulation of LIBOR?

[Ed Balls]

As the hon. Gentleman will know—because I said this yesterday—at no point at any time when I was an adviser or City Minister was it suggested to me by the Financial Services Authority, the Treasury, the Bank of England, or anyone in the House that there was any reason to doubt the integrity of the LIBOR market. The facts came to light only subsequently, and they are now being properly investigated. I hope that that serves as a full answer to the hon. Gentleman.