Political row over who should investigate the bankers

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The Serious Fraud Office will also look into banking practices at Barclays and other banks Photo:

Labour and the Government have clashed over how to investigate wrongdoings in the banking sector.

The Prime Minister has announced a Parliamentary inqury, which means that politicians will call bank bosses to account over the recent scandal involving Libor rates.

But the Labour leader Ed Miliband says a fuller, independent inquiry should be held, led by a judge.

The chairman of Barclays stepped down today but chief executive Bob Diamond is still fighting to stay.

His departure could save Bob Diamond because if he went too this would be very destabilizing for Barclays. There are powerful forces on the board that support Bob Diamond now and many think there is no one of his calibre to do the job.

But as soon as a new chairman is appointed Bob Diamond's role will be his first task.

Also he has to face the possibility that the serious fraud office will investigate his activities and there could be criminal responsibilities to answer to. Also, he could be personally liable for losses.