The Banking Enquiry, why you shouldn’t hold your breath

In the past few weeks, those of us who regarded Murdochs’s NI as the right hand of the devil have had much to cheer. We all knew that the Nasties were very close – make that far too close- to Murdoch and many of his right hand people, for political impartiality to be anything other than a pipe dream. So we stood, within a whisker of NI making a full takeover of Sky broadcasting and thus unleashing the potential for Fox News and it’s right wing running dogs to unleash their particular style of venom and rumour peddling on a largely unsuspecting UK audience.
All that was subsequently blown away by the public enquiry headed by Lord Justice Leveson.
Some particularly forensic questioning kept opening more cans of worms than we knew existed and this culminated last week in a rant by Murdoch who effectively took his ball in when he said that he would spend his money elsewhere if the UK didn’t want it.
Well a good percentage of us, not in the government of course, didn’t, so no great loss there.
But, and thanks for bearing with me so far, what has this to do with the current banking scandal, currently unfolding in the UK, regarding rigging LIBOR interest rates?

Sadly, less than you might think. Those of us who quite like justice and fair play would like to look forward to a repeat of the Leveson inquiry when all the delicious and devious dealings Are finally laid bare and when the myth of light touch regulation is laid to rest.
One word. Unlikely.
Why? Well, mainly because Cameron thinks he has now found an opportunity to use this to divert attention away from his administrations many failings and focus public attention on the proposition that this banking crisis can be laid squarely at the feet of the last Labour government for allowing such light touch regulation. So he hastily announced in Parliament yesterday that, whilst an urgent enquiry would take place, it would be a parliamentary enquiry, albeit an all party affair.
Cameron, of course did not at this time clarify how much funding the Nasties receive from the City, but we know it’s a lot. Neither has he yet intimated that he intends to correct the light touch regulation he is seeking to condemn so heartily. It’s unlikely he will either, unless he is pushed so far into a corner, a la NI for the simple reason given above.

As I write this, Diamond has just resigned, reversing yesterday’s assertion that he was in it for the long haul. This may be a straw in the wind, who knows?
For now though, it is up to Labour to take a strong lead and push as hard as possible either for a public enquiry, or by seeking to expose as much wrong doing as possible on the parliamentary committee. In this it must be hoped that the Lib Dems will also feel inclined to support such an initiative, as many senior members also share an intense distrust of the banking industry.

More will surely follow.


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