Ministers to order Libor bank rate review

David Cameron said he would not be pushed into making a snap decision about whether to order a full inquiry into the banking industry

An independent review of the workings of the Libor inter-bank lending rate has been announced by the government in the wake of the Barclays fine.

Barclays was fined £290m ($450m) for attempting to manipulate the Libor, and other banks are being investigated.
Barclays boss Bob Diamond has been summoned to appear before the Treasury Select Committee on Wednesday.
Labour leader Ed Miliband has called for a public inquiry into the customs and practices of the banking industry.
Earlier this week, the Financial Services Authority and US Department of Justice fined Barclays, and investigations are under way into HSBC, RBS, Citigroup and UBS.
The independent review, which will examine the future operation of Libor - the daily rate set by the British Bankers' Association (BBA) - will be established next week and report by the end of summer.
It will ensure amendments can be made to the Financial Services Bill which is currently going through Parliament. It will also examine whether to target institutions or individuals and whether to launch criminal prosecutions rather than impose fines.
Andrew Tyrie, the select committee chairman, said Mr Diamond's hearing would focus on the Libor scandal, which he described as "the most damaging I can recall".
"The public's trust in banks has been even further eroded. Restoring the reputational damage must begin immediately," Mr Tyrie added.
Barclays' chairman, Marcus Agius, will appear on Thursday.
'Corrupt elite' Continue reading the main story

Posted in: UK