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Ed Balls backs calls for Leveson-style banking inquiry Ed Miliband to publish details of banking inquiry
(about 1 hour later)
Shadow chancellor Ed Balls has thrown his weight behind calls for an independent inquiry into the culture of "lying" in UK banks. Labour leader Ed Miliband is to outline proposals for a "Leveson-style" inquiry into the culture and practices of the British banking industry.
He said that, in retrospect, Labour had not been tough enough on the banks. He told BBC News he wanted to "shine a light" into its dark corners.
But people had been shocked by the "swaggering arrogance" that had come to light in the past 24 hours. He called for change at the top of Barclays and said people had been "appalled" by practices at the bank.
Tory backbenchers and the TUC have also called for a Leveson-style probe - but the Treasury and the Bank of England have rejected the idea.Tory backbenchers and the TUC have also called for a Leveson-style probe - but the Treasury and the Bank of England have rejected the idea.
Earlier, Shadow chancellor Ed Balls said people had been shocked by the "swaggering arrogance" that had come to light in the past 24 hours and, in retrospect, Labour had not been tough enough on the banks.
Mr Balls, who as Labour's City minister championed "light touch" regulation, said only an "arm's-length" inquiry would get to the bottom of bad regulation that he said dated back to the 1980s.Mr Balls, who as Labour's City minister championed "light touch" regulation, said only an "arm's-length" inquiry would get to the bottom of bad regulation that he said dated back to the 1980s.
He told the BBC News channel that it was the "culture of lying" in banks as much as the regulatory framework that needed to change - and there was now a case for a full public inquiry.He told the BBC News channel that it was the "culture of lying" in banks as much as the regulatory framework that needed to change - and there was now a case for a full public inquiry.
'Culture change''Culture change'
He said: "We can't just brush this under the carpet. People are shocked by the swaggering arrogance of what we discovered in the last 24 hours, and I think we need to open this wide open." Labour's decision to announce an inquiry comes after the Financial Services Authority ordered Barclays to pay a £290m fine for trying to manipulate a key bank interest rate and revelations that banks mis-sold specialist insurance.
His comments follow the Financial Services Authority's decision to fine Barclays £290m for trying to manipulate a key bank interest rate and revelations that banks mis-sold specialist insurance tied to thousands of small businesses. Some MPs have called for Barclays' chief executive Bob Diamond to resign and Mr Miliband said: "it is pretty clear that change is required at Barclays and it is very hard to see that led by Bob Diamond."
Some MPs have called for Barclays' chief executive Bob Diamond to resign and Mr Balls said he was unsure whether the current leadership "could take the bank forward".
Bank of England Governor Sir Mervyn King said Britain's banks needed a "real change in culture" but ruled out a wider inquiry.Bank of England Governor Sir Mervyn King said Britain's banks needed a "real change in culture" but ruled out a wider inquiry.
David Cameron supported his comments saying action on accountability, regulation, transparency and behaviour was what was needed.David Cameron supported his comments saying action on accountability, regulation, transparency and behaviour was what was needed.
He said: "We know what needs to be done so let's get on and take those actions."He said: "We know what needs to be done so let's get on and take those actions."
"I think the most important thing people want to see is a really concrete set of actions that will help change the culture."I think the most important thing people want to see is a really concrete set of actions that will help change the culture.
"You don't change culture by changing laws and changing regulators alone but I think if we can do this in a very clear and considered way then we have a chance of getting this right," he added."You don't change culture by changing laws and changing regulators alone but I think if we can do this in a very clear and considered way then we have a chance of getting this right," he added.
Business Secretary Vince Cable told BBC News he did not have "any strong objection" to an independent inquiry but added "I'm not sure how it helps".Business Secretary Vince Cable told BBC News he did not have "any strong objection" to an independent inquiry but added "I'm not sure how it helps".
He said the problems within the industry were known and the public and the business community wanted the government to "get on and make our banking system stable".He said the problems within the industry were known and the public and the business community wanted the government to "get on and make our banking system stable".
'Fundamental dishonesty''Fundamental dishonesty'
A petition on the government's e-petition website calling for a judicial public inquiry into the wrongdoing and ethics of bankers, with "full powers to compel witnesses to appear on oath, and to obtain all forms of evidence" has received more than 4,000 signatures. A petition on the government's e-petition website calling for a judicial public inquiry into the wrongdoing and ethics of bankers, with "full powers to compel witnesses to appear on oath, and to obtain all forms of evidence" has received more than 4,500 signatures.
Lib Dem backbench Treasury spokesman Stephen Williams backed calls for a Leveson-style inquiry. Lib Dem backbench Treasury spokesman Stephen Williams backed calls for a Leveson-style inquiry, as did former Conservative chancellor Lord Lamont.
And Mark Garnier, a Conservative member of the Treasury Select Committee, said a process in which banks were "pulled over the coals" would address public fears. And Mark Garnier, a Tory member of the Treasury Select Committee, said a process in which banks were "pulled over the coals" would address public fears.
He said the levelling of the fine on Barclays was a "game-changing moment" because it showed "fundamental dishonesty and systemic and institutionalised behaviour".He said the levelling of the fine on Barclays was a "game-changing moment" because it showed "fundamental dishonesty and systemic and institutionalised behaviour".
Lord Justice Leveson is carrying out an inquiry, which has already lasted more than 12 months, into the culture, practices and ethics of the media following the phone-hacking scandal.Lord Justice Leveson is carrying out an inquiry, which has already lasted more than 12 months, into the culture, practices and ethics of the media following the phone-hacking scandal.
During the course of the inquiry, new evidence has come to light and witnesses, who have included journalists, top politicians and victims of phone hacking, have been subject to lengthy and detailed questioning by a barrister.During the course of the inquiry, new evidence has come to light and witnesses, who have included journalists, top politicians and victims of phone hacking, have been subject to lengthy and detailed questioning by a barrister.
But Treasury Minister Mark Hoban told BBC News there had already been a number of inquiries into the banking sector.But Treasury Minister Mark Hoban told BBC News there had already been a number of inquiries into the banking sector.
"I think what households, taxpayers and businesses want to see is action not words and we're taking the tough action that's needed to get the regulation right and help change the culture of banking in this country," he said."I think what households, taxpayers and businesses want to see is action not words and we're taking the tough action that's needed to get the regulation right and help change the culture of banking in this country," he said.