MPs back parliamentary banks probe
The Commons has supported David Cameron's call to set up a parliamentary inquiry into the banking industry despite Labour opposition.MPs voted by 330 to 226, majority 104, to set up the inquiry, which will be led by Treasury Select Committee chairman Andrew Tyrie.
The Commons refused Labour demands for a Leveson Inquiry-style investigation into the culture of the City, rejecting the proposal by 81 votes.
Shadow chancellor Ed Balls said Labour would take part in the parliamentary inquiry but would keep up demands for a wider-scale investigation.
Mr Balls said Labour would work with Mr Tyrie, but said Labour had "very real concerns" about the membership and secretariat of the joint committee which will now be set up.
But he vowed to push for a larger inquiry once the joint committee's work finished, saying: "It is clear there is a wider set of questions from mis-selling to small businesses to the wider culture and practices of the banking industry which are outside the scope of the inquiry and cannot be properly addressed by an parliamentary committee.
"In our view, the case for a full, open, judge-led public inquiry is stronger at the end of this afternoon and we will continue to press that case."
He accused Chancellor George Osborne and the Prime Minister of "a very grave error of judgment", adding that when future scandals emerged the public would call for independent public inquiries.
But Mr Osborne said work would now begin on who should sit on the committee.
He added: "What everyone now wants to do is get a resolution that all sides can agree on that we bring before the House before the House rises and we can get this joint committee up and running and we can get to the bottom of what went wrong in our banking industry and what went wrong with the Libor scandal and make the changes in legislation to make sure it never happens again."
But he vowed to push for a larger inquiry once the joint committee's work finished, saying: "It is clear there is a wider set of questions from mis-selling to small businesses to the wider culture and practices of the banking industry which are outside the scope of the inquiry and cannot be properly addressed by an parliamentary committee.
"In our view, the case for a full, open, judge-led public inquiry is stronger at the end of this afternoon and we will continue to press that case."
He accused Chancellor George Osborne and the Prime Minister of "a very grave error of judgment", adding that when future scandals emerged the public would call for independent public inquiries.
But Mr Osborne said work would now begin on who should sit on the committee.
He added: "What everyone now wants to do is get a resolution that all sides can agree on that we bring before the House before the House rises and we can get this joint committee up and running and we can get to the bottom of what went wrong in our banking industry and what went wrong with the Libor scandal and make the changes in legislation to make sure it never happens again."
© 2013 Press Association