House of Commons · General Debate
23 May 2023 · 3 other contributors
Opened by David Davis Con Goole and Pocklington
Summarised by AI from the official record, so it can contain mistakes.
David Davis raised concerns about libor fixing: conduct of investigations in the House of Commons. Other MPs contributed to the debate.
Key points
MPs spoke in turn to share their views and ask questions. Here's what each person said.
Opened the debate
Mr Davis highlighted the miscarriage of justice in the LIBOR scandal, detailing how regulators and prosecutors failed to hold senior executives accountable for their role in manipulating interest rates. He cited critical data from Andrew Verity's investigation, revealing that lower-ranking employees were scapegoated while those at the top escaped prosecution. Mr Davis argued for a re-examination of cases through the Supreme Court or a new parliamentary inquiry.
Mr Davis stated that the LIBOR scandal was caused by senior executives pressuring lower-ranking employees to submit inaccurate interest rate estimates. He emphasised that critical evidence was concealed, leading to wrongful convictions of whistleblowers and low-ranking bankers. Mr Davis suggested that these cases should be re-examined by the Supreme Court or through a fresh parliamentary inquiry.
Mr McDonnell thanked Mr Davis for bringing attention to the LIBOR scandal, acknowledging it as a miscarriage of justice. He suggested delaying any police inquiries until after a Select Committee inquiry is confirmed, emphasising that such an investigation should cover all involved parties including Treasury officials and regulatory bodies.
Congratulates the Member for Haltemprice and Howden on securing the debate, recognises the work done to raise awareness of LIBOR issues. Emphasises that LIBOR was once a critical financial benchmark impacting over $400 trillion in contracts globally. Explains how post-2008, due to decreased liquidity, LIBOR became vulnerable to manipulation leading to its wind-down process by regulators and banks. Discusses the LIBOR scandal of 2012 where bankers manipulated rates for personal gain resulting in criminal prosecutions and fines. Highlights government actions including the Wheatley review and Financial Services Act 2012 which brought LIBOR under FCA jurisdiction, making manipulation a crime. Acknowledges concerns about state involvement but refers to previous evidence provided by Paul Tucker and expects Treasury Committee to respond appropriately.