Lord Myners: Banking scandal symptom of 'wider cancer' in industry

The rigging of the Libor interest rate is only just a symptom of a much wider cancer in the UK's financial services industry, former City minister Lord Myners said today.

Former City minister Lord Myners says banking scandal is only symptom of 'wider cancer' Credit: PA Wire

He told peers that since last year he has asked ministers repeatedly about the manipulation of the interest rate but has received "backhanded" responses from the Government. Speaking in the House of Lords, he said:

"It goes well beyond Libor. Libor manipulation - the lying and deceit which we know took place systemically across the banking industry, not limited to Barclays alone - is but a symptom of a wider cancer at the heart of the banking industry.

"That is why we need a judicial review. The term of reference of the Tyrie review are extremely limited, they are ringfenced, they are very precise, they do not ask the questions that should be asked."

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Deep division over bank inquiry

Labour leader Ed Miliband has stepped up demands for a full judicial inquiry into the banking scandal, warning the public is in no mood for an "establishment cover-up". The Government wants a rapid, cross-party inquiry by MPs and peers.