Libor questions linger for Labour

As new details emerge around the Libor rate-rigging scandal, with the Bank of England responding to evidence it was pressed by to make changes in the way that Libor was set in 2008, SNP Treasury spokesperson Stewart Hosie MP said the revelations raised serious new questions for Treasury Ministers in office at the time.

With the Financial Times reporting concerns about Libor as early as September 2007, Mr Hosie has tabled a series of parliamentary questions to the Treasury seeking total disclosure over discussions and briefings involving Ministers and officials.

Mr Hosie – a member of the Treasury Select Committee – said:

“With new details emerging over the Libor scandal from the United States, we need to fill in the gaps and find out who knew what and why action was not taken earlier by those in charge.

“There are three pillars to the tripartite system, yet we have heard very little from the Treasury. The time has come for total disclosure.

“It is clear that problems with Libor - reported in the FT in September 2007 – were no secret in City circles yet we are supposed to believe that nobody in Downing Street at the time or the FSA knew what was going on – that is very hard to believe.

“We need to know how detailed the discussions were between Central Banks, between the regulators at the FSA and their US counterparts, as well as between Ministers and Officials at the Treasury.

“This is exactly why the SNP wanted an independent judge led and wide-reaching inquiry to root out the issues and bring all parties involved to account.”