Lord Ian Blair, the former head of the Metropolitan Police and an independent crossbench peer, said today that evidence given to a judicial inquiry was given on a "completely different basis" to evidence given in court or to a parliamentary inquiry.
It follows a Parliamentary dispute over an inquiry into the bank rate-rigging scandal. Lord Blair said: "What I don't understand is the sense there needs to be any dispute between the two sides of the House.
"Have a criminal inquiry, have Tyrie and have a judge-led inquiry into the ultimate circumstances of the way the banking culture has taken over parts of our society."
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."