Shadow Chancellor Ed Balls, who served as Economic Secretary to the Treasury in 2006/7, insisted he knew nothing about senior figures in Whitehall applying pressure over Barclays' high Libor pricing today.
He told BBC News: "I have absolutely no idea, that's why I want, as Ed Miliband does, a full open judicial inquiry at arms-length forensically to ask these questions to see whether anybody knew what was going on.
"Without that I don't think we can have confidence or the public can't have confidence that we are moving forward in sorting out this culture."
The Government and Labour clash over the scale of inquiry into the banking scandal. Labour want a full, independent one.
The new government inquiry will look both into the culture of banking and into the setting of Libor rates
The Chancellor's team says his announcement to the Commons will "shoot Labour's fox."