Former chancellor and a bishop to probe Libor-rigging scandal

FORMER chancellor Nigel Lawson and the Bishop of Durham are among the five peers yesterday appointed to the parliamentary investigation into banks’ abuse of the London inter-bank offered rate (Libor).

In recent years Lawson has become a leading proponent of the campaign to split bank’s retail operations from their investment banking arms.

Other peers appointed to the committee include former Labour MP John McFall, who was chairman of the House of Commons’ Treasury select committee during the financial crisis. Lib Dem Susan Kramer and former cabinet secretary Andrew Turnbull will also sit on the panel.

Although the appointment of the Bishop of Durham may seem unusual, the Right Revd Justin Welby is a former City trader with knowledge of relevant markets.

“Having started dealing in these markets from the oil industry side in the late 1970s, and with experience not only of Libor related instruments but also of a range of derivatives and many other forms of market, as well as being involved in the City of London through work on ethical investing in recent years, this is an area where I hope to be able to make a useful contribution,” the Bishop said yesterday.

Five MPs were appointed to the committee last week. Andrew Tyrie will be chairman while John Thurso, Pat McFadden, Mark Garnier and Andy Love will also be involved.