Parliamentary Commission on Banking Standards

John McDonnell Excerpts

Monday 16th July 2012 Commons Chamber

[John McDonnell (Hayes and Harlington) (Lab)]

I want to make a brief point about paragraph (1)(a), which sets out the terms of reference. Some months ago there were reports, which I raised with the Prime Minister, about the Bank of England’s intervention with at least one bank, and perhaps more, about the manipulation of the quantitative easing auctions. I would welcome an assurance that paragraph (1)(a) will cover that issue as well, rather than just the LIBOR issue, because it is a matter of concern if a single bank or a number of banks sought to profiteer from the quantitative easing that was put in place by the Government to rescue the banks. Indeed, it seems extraordinary that the banks would seek to profiteer from the taxpayers’ money that was used to intervene and save them from the crisis that they had brought about. I would welcome an assurance from the Chair of the inquiry that that matter, as well as LIBOR, will be looked into when we consider the issue of transparency and the ability of the banks to manipulate the system overall.