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PM's spokesman: All three parties agreed on Banking Inquiry committee members

Downing Street stressed today that the three main government parties had agreed who would be on the committee for a parliamentary inquiry into the banking industry. The Prime Minister's spokesman said:

The membership of the committee is something for the political parties and they have agreed between themselves who can serve.

It is an unusual committee in that it can draw on advice and that includes using counsel to question witnesses.

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  1. Lucy Manning

Concerns raised as 'probing' MPs excluded from Banking Inquiry

The terms for setting up the Inquiry makes clear it will report by the 18th December so it will be a quick Inquiry. It will also be able to question witnesses on oath and appoint a barrister to examine witnesses.

There is obviously some concern that probing MPs have been left off (John Mann is now calling it a whitewash and says he'll set up his own inquiry.)

John Mann, Andrea Leadsom and Teresa Pearce did have a good session last week yet miss out on a spot on the Inquiry. So there is an issue it could lack bite. But the appointment of a Robert Jay style QC could sharpen things up. Will Mr Jay be free from Leveson by then?

Labour MP says he will set up his own Banking Inquiry

John Mann the MP for Bassetlaw in Nottinghamshire. Credit: John Stillwell/PA Wire

Labour MP John Mann has angrily responded to his exclusion at the Banking Inquiry today. Mr Mann said that he would be "setting up his own inquiry" into this "dreadful mess".

Neither Labour MP John Mann nor Conservative MP Andrea Leadsom have been selected to sit on the Parliamentary Commission on Banking Standards, despite their forthright questioning of bankers as members of the Treasury Select Committee.

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Bank set to relax cash buffer rules

Bank Governor Sir Mervyn King. Credit: Rebecca Naden/PA Wire/Press Association Images

The Bank of England is expected to make a fresh push today to kickstart lending by freeing up billions of pounds held by banks.

Experts believe the Bank's Financial Policy Committee (FPC) will recommend plans to relax rules requiring banks to hold large amounts of cash as a buffer.

The committee met last week and is due to publish its latest recommendations, alongside the Bank's biannual financial stability report.

Bank Governor Sir Mervyn King and other members of the committee, which oversees financial stability, have already signalled the move as the Bank looks at ways to get the flow of credit moving.

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