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:
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.