Professional Standards in the Banking Industry

Lord Dodds of Duncairn Excerpts

Thursday 5th July 2012 Commons Chamber

[Mr Osborne]

I will give way in a moment, but let me make this point.

We all agree that, in the words of the FSA, Barclays

“failed to conduct its business with due skill, care and diligence”,

failed to

“take reasonable care to organise and control its affairs responsibly and effectively”

and failed to

“observe proper standards of market conduct”.

We all agree that the misconduct of Barclays created the risk that

“confidence in or the stability of the UK financial system would be threatened.”

We can also agree—this is material to the point about whether there should be a judge-led inquiry or a parliamentary inquiry—that the FSA and the Department of Justice in the United States have done a very effective job in identifying what went wrong after the event. Sadly our regulators failed to see it coming, but the job afterwards has been effective. Now, I think we can all agree that we want the prosecuting authorities to see whether there are legal routes that they can take to bring proceedings against those involved. That is of course a matter for them. In this very partisan debate, that at least is a matter of consensus.

[Mr Nigel Dodds (Belfast North) (DUP)]

The Chancellor referred to the public anger, which is palpable. Is not the choice of which type of inquiry should take place a matter of public confidence? The public want to see a judge-led independent inquiry.

[Mr Osborne]

We heard from the Attorney-General that a judge-led inquiry may, in his words, not even get off the ground. The idea that we cannot have a parliamentary inquiry is obvious nonsense, because yesterday the Treasury Committee questioned Bob Diamond on the LIBOR scandal. Of course it is entirely possible for a parliamentary inquiry to take place. Our motion will enable us to get an inquiry under way and assuage the anger of the people of Northern Ireland and the rest of the country.