Wednesday, July 4, 2012

Cameron's bank probe in chaos: Inquiry chairman threatens to quit before it starts and Labour warns of a 'cover-up'

David Cameron’s plan to hold a rapid parliamentary probe into the banking scandal was in turmoil last night.

Andrew Tyrie, the senior Tory MP chosen to chair it, threatened to pull out, while Labour insisted that only a full-scale public inquiry, led by a senior judge, could restore public confidence.

After private talks with Labour leader Ed Miliband, the Prime Minister agreed to offer MPs a vote on whether to stage a judicial inquiry, or whether it should be dealt with by a committee of MPs and peers.

There will be a debate on the issue in the Commons tomorrow, though Coalition MPs will be ordered to back the Government’s preferred option.

Labour is considering whether it should refuse to allow its MPs and peers to take part in a parliamentary inquiry if, as expected, the Government wins the vote.

Mr Miliband warned that an inquiry by parliamentarians would lack credibility with the public. Read More