Following initial support for the idea of a Leveson-style inquiry into banking, concerns are now being raised regarding the cost and effectiveness of such an investigation.
An inquiry was suggested after the Barclays interest rate fixing scandal came to light last week. It has emerged that since 2005 the Barclays traders tried to alter rates to help themselves and rival traders. It is also alleged that in 2008, when Barclays raised concerns about Libor, the bank is said to have kept rates lower because higher levels might have been misinterpreted as suggesting the bank was facing financial difficulties.
The revelation caused public and political outrage and sparked calls for an inquiry. However, the reality of a lengthy investigation similar to Leveson is considered by many as the wrong course to take:
https://twitter.com/djm_dalrymple/status/219202312915259392
https://twitter.com/JStott1975/status/219500753780355072
https://twitter.com/kasilas/status/219692376938119168
https://twitter.com/jimcbarker/status/219743166327304193
https://twitter.com/thejamesmax/status/219733429015683072
https://twitter.com/Commuterist/status/219748552526675970
https://twitter.com/jonshafai/status/219770958414741504
Despite the apparent change in opinion Labour have this morning announced that they back calls for an inquiry, and it seems likely that some sort of investigation will be pursued; a government announcement is expected imminently.
