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PM Announces Parliamentary Rate-Rigging Probe

(c) Sky News 2012

A full Parliamentary committee of inquiry will be set up in the wake of the Libor rate-rigging scandal, David Cameron has announced.

The Prime Minister dismissed calls for a Leveson-style inquiry into the matter, insisting he wanted to reach the truth quickly.

In a statement to MPs (BSE: MPSLTD.BO - news) , he revealed the probe would be chaired by Treasury Select Committee chairman Andrew Tyrie.

It comes after Barclays (LSE: BARC.L - news) chief executive Bob Diamond admitted he was disappointed that the scandal happened on his watch - and follows the resignation of Barclays chairman Marcus Agius.

Mr Cameron said the Serious Fraud Office were looking at whether any criminal prosecutions could be brought.

He went on: "I want us to establish a full parliamentary committee of Inquiry involving both Houses chaired by the Chairman of the House of Commons Treasury Select Committee.

"This Inquiry will take evidence under oath have full access to papers, officials and Ministers - including Ministers and Special advisers from the last government and it will be given, by the government, all the resources it needs to do its job properly."

"This is the right approach because it will be able to start immediately it will be accountable to this House and it will get to the truth quickly, so we can make sure this can never happen again.

Labour leader Ed Miliband vowed to continue pushing for a "full and open" independent inquiry.

"I'm not convinced by his way forward because I do not believe it measures up to the scale of what is required," he said.

David Cameron's official spokesman said Mr Agius's resignation was "a matter for Barclays' board and Barclays' shareholders".

But asked whether the chairman's departure drew a line under the issue, the spokesman responded: "The Prime Minister has made the point that they have serious questions to answer, and I think that is still the case.

"The Prime Minister wants to see accountability for what has happened. If people have broken rules then they should face the consequences. Clearly people at the top of that organisation have serious questions to answer."

Deputy Prime Minister Nick Clegg added: "Remember these are people who are paid big, fat bonuses in the good times and they need to also take responsibility in the bad times."